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Canada’s Millennial Lithium Corp. (OTC:MLNLF) said that China’s Contemporary Amperex Technology Co. Ltd. or CATL, a battery supplier to Tesla Inc. (NASDAQ:TSLA) and Nio Inc. (NYSE:NIO), has agreed to acquire the lithium mining company for about C$377 million ($297.3 million).
What Happened: Millennial Lithium said that CATL will acquire all of its outstanding shares for C$3.85 ($3.04) per share in cash.
The Argentina-focused mining company has terminated its deal with China-based lithium producer Ganfeng Lithium Co. Ltd. (OTC:GNENF), which had earlier offered to acquire it for C$3.60 ($2.84) per share.
See Also: Tesla Reports Q3 Deliveries This Week: What To Expect
Why It Matters: The deal highlights the efforts by CATL, the world’s biggest EV battery maker, to secure supplies of key battery materials. The battery is the key component of an electric vehicle as it accounts for roughly 30% of the cost.
CATL is exploring the acquisition of a minority stake in Hong Kong-listed Chinese miner Jinchuan Group International Resources Co., according to a Bloomberg report in August.
CATL has also been expanding battery manufacturing capacity across China and in Germany amid the rising demand for electric vehicles around the world.
It was reported earlier this month CATL will build a lithium battery production site in eastern China for an investment of up to $2.1 billion.
Price Action: Millennial Lithium’s shares closed 5.2% lower in Tuesday’s trading at $2.94.
Read Next: Cathie Wood Sells Another $265M In Tesla On Tuesday — These Are Other Key Trades
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