Tianqi Buys 24% Stake in Rival Lithium Producer SQM

China’s Tianqi Lithium Corp. has agreed to purchase 24% of Chilean lithium producer Sociedad Química y Minera de Chile SA (SQM) for nearly $4.1 billion.

The proposed purchase from Canada-based fertilizer company Nutrien Ltd. faces regulatory scrutiny, because it involves two of the world’s largest lithium suppliers. Analysts note that lithium prices have tripled in the last three years and likely will increase more on growing demand for electrified vehicles powered by lithium-ion batteries.

Tianqi will buy all of Nutrien’s 62.5 million class A shares of SQM for $65 each. Nutrien, which was formed in January through the merger of Agrium Inc. and Potash Corp., was required to sell its class A shares in SQM and also aims to divest its 20 million class B shares in the Chilean company.

Tianqi also operates a lithium mining joint venture in Australia with North Carolina-based Albermarle Corp. The Australian venture accounted for about 35% of the global lithium carbonate supply last year.