Chinese battery materials maker Zhejiang Huayou Cobalt in talks to buy Australian Atlantic Lithium
Chinese lithium battery materials maker plans to acquire the Australian company for US$210 million (R$1 billion) in a transaction aimed at securing control of a key lithium project in Ghana and strengthening the Chinese company’s upstream resource base.
According to the agreement announced by Huayou Cobalt last Thursday (May 7, 2026), the final purchase price of Atlantic Lithium will be determined based on capital gains taxes applied by the Ghana Revenue Authority. The deal is subject to regulatory approvals, including from the Australian Foreign Investment Review Board, as well as authorities in China and Ghana.
The acquisition focuses on Atlantic Lithium’s flagship asset, the Ewoyaa lithium mine. The site has estimated reserves of 36.8 million tonnes of mineral resources with a lithium oxide content of 1.24%, which is equivalent to 1.1 million tonnes of lithium carbonate. In March, the project became the first lithium mine in the African country to receive formal parliamentary approval for its mining concession.
The agreement is expected to strengthen Huayou’s self-sufficiency and supply chain resilience by expanding its existing African portfolio, which includes the Arcadia project in Zimbabwe and the Mikas and CDM operations in the Democratic Republic of Congo.
EXPANSION OF PRODUCTION
The acquisition highlights a broader push by major Chinese miners to aggressively expand their overseas presence as rising lithium prices and looming supply shortfalls accelerate a new expansion cycle for the sector.
Zijin Mining Group plans to increase its lithium production from 25,500 tonnes of lithium carbonate equivalent in 2025 to quantities ranging from 270,000 to 320,000 tonnes by 2028.
This expansion, driven mainly by the Manono project, in the northeast of the Democratic Republic of Congo, which is expected to come into operation in June 2026, could make Zijin one of the largest lithium producers in the world.
In comparison, top domestic producers Tianqi Lithium and Ganfeng Lithium Group expect to produce 87,900 tons and 182,400 tons, respectively, in 2025. Ganfeng aims to achieve an annual production capacity of at least 600,000 tons by 2030.
The rush to secure assets coincides with a sharp rise in commodity costs this year. Domestic lithium carbonate futures briefly surpassed the 200,000 yuan ($29,400) mark on May 7, before closing at 196,500 yuan per ton the following day, consolidating an increase of nearly 49% since the start of the year.
Prices were driven by policy changes and geopolitical frictions. Market expectations regarding the April 1 reduction in China’s battery export tax rebate from 9% to 6% prompted energy storage companies to accelerate shipments, pushing prices to a peak of 189,000 yuan per ton in late January before falling back to around 130,000 yuan.
In another context, the decision, on February 25, by Zimbabwe, one of the main African exporters, to suspend shipments of lithium concentrate and raw ore boosted prices to close to 190 thousand yuan per ton, the highest level since September 2023.
Broader market volatility has also been exacerbated by uncertainty surrounding Zimbabwe’s export approvals and the impact of the US-Iran war on energy storage facilities in the Middle East, causing prices to fluctuate from 130,000 to 160,000 yuan per tonne.
Global demand for lithium is expected to surpass supply in 2026. In an optimistic scenario from data provider Argus, global supply is expected to grow 29% year-on-year, reaching 2.3 million tonnes of lithium carbonate equivalent, while demand is expected to jump 35%, also to 2.3 million tonnes, resulting in a deficit of 10,000 tonnes.
This text was originally published by Caixin Global, on May 11, 2026. The content is free for republication, citing the source, it was adapted to the standard of Poder360.
