Rockwood and Tianqi Form Venture for Lithium

Bloomberg reported that the world’s largest lithium product producer, Rockwood Holdings, has agreed to form a joint venture with China’s Chengdu Tianqi Industry Group, giving the company a stake in Australian lithium mining unit: Talison Lithium.

According to the report:

Rockwood will take a 49 percent stake in a venture controlling Talison Lithium Pty Ltd., with Tianqui holding the other 51 percent, Princeton, New Jersey-based Rockwood said today in a statement.

Rockwood will contribute to the venture $196 million in equity and a two-year secured loan of as much as $670 million with 8 percent interest. It will also give Tianqi a three-year call option to acquire as much as 30 percent of its European lithium unit.

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