Chinese Lithium Acquisition Spree Shifts from Chile to Argentina

LOS ANGELES, April 23, 2018 /PRNewswire/ --

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USA News Group - While one recent major Chinese lithium acquisition was being aggressively hindered in Chile, another was being approved in neighboring Argentina-an all-cash deal worth $265 million.

Recent efforts by Chilean government agency Corfo to block Chinese firm Tianqi Lithium from acquiring a 32% stake in lithium giant Sociedad Quimica y Minera de Chile (NYSE: SQM) seem to be sending an alarming message to foreign firms who originally sought investment in Chile, and are now perhaps changing their target region to neighboring Argentina.

With heavy development happening in the country, Chinese firms may start taking a more serious look at companies with assets in Argentina, which include SQM, Lithium X Energy (TSX-V: LIX) (OTC: LIXXF), Millennial Lithium Corp. (OTC: MLNLF) (TSX-V: ML), Orocobre Limited (TSX: ORL) (OTC: OROCF), and NRG Metals Inc. (OTC: NRGMF) (TSX-V: NGZ).

Foreign investors have been ramping up interest in South America's precious lithium brines, which are much cheaper to produce than Australian hard-rock mining. This attention zeroes in on a region known as the Lithium Triangle, which spans Chile, Bolivia, and Argentina.

However, these three aren't seen as equals on the international stage. Bolivia's far-left government turns away most foreign investment, leaving it far behind in the dust. But it seems that Chile and Argentina are duking it out for lithium supremacy-a duel that's been spun around in recent years, as major government changes in both countries are seemingly swapping their reputations.

Lithium X Energy (TSX.V: LIX) (OTC: LIXXF) and the sale of its assets in Argentina show a completely different attitude towards the Chinese drive for lithium supplies-Having successfully completed an arrangement that netted the company an all-cash deal worth $265 million, to Chinese investment firm Nextview New Energy Lion Hong Kong Ltd.

Late last year, NRG Metals Inc. (OTC: NRGMF) (TSX.V: NGZ) sealed its own deal with Chinese high-purity lithium manufacturers Chengdu Chemphys Chemical Industry Co., Ltd ("Chemphys")-Successfully meshing their new partners into the strategy going forward, which recently began drilling on its Salar Escondido Project.

What the lithium market is witnessing is the beginning of a shift to Argentina will inevitably boost interest and investment, and benefit companies such as Lithium X Energy (TSX.V: LIX) (OTC: LIXXF), Millennial Lithium Corp. (OTC: MLNLF) (TSX.V: ML), Orocobre Limited (TSE: ORL) (OTC: OROCF), and NRG Metals Inc. (OTC: NRGMF) (TSX.V: NGZ).