LAC:CC - Lithium stocks up sharply as Albemarle seeks to buy Australian start-up
2023-03-28 10:28:18 ET
Stocks of lithium producers ( LIT ) are moving higher early Tuesday after Albemarle ( NYSE: ALB ) submitted a proposal to buy Australian lithium start-up Liontown Resources in a deal valued at ~A$5.5B (US$3.66B).
Liontown management rejected the A$2.50/share bid as inadequate, and investors appear to agree, sending the stock soaring as much as 70% in Sydney to A$2.57, $0.07 higher than the Albemarle ( ALB ) offer.
Shares of other small-cap lithium miners are rising, including Standard Lithium ( SLI ) +14.3% , Sigma Lithium ( SGML ) +9.5% , Piedmont Lithium ( PLL ) +7.6% , and Lithium Americas ( LAC ) +5.3% .
Bigger lithium-oriented miners also trade higher, with Livent ( LTHM ) +5% , SQM ( SQM ) +3.1% , and Albemarle ( ALB ) +1.1% .
Albemarle ( ALB ) is "poised for rapid long-term expansion thanks to the rising demand for lithium to power EVs and charging stations," Yannick Frey writes in an analysis posted recently on Seeking Alpha .
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Lithium stocks up sharply as Albemarle seeks to buy Australian start-up