News
SoftBank to acquire stake in Canada's Nemaska Lithium
Published 06 April 2018
SoftBank Group has entered into an agreement to acquire 9.9% stake in the Canadian lithium company, Nemaska Lithium.
Nemaska is developing the Whabouchi mine in Québec, Canada, one of the richest spodumene hard rock lithium deposits in the world and is building a lithium electrochemical plant (refining plant) at Shawinigan, which is expected to start commercial production of high-purity lithium hydroxide and lithium carbonate in the latter half of 2020.
By investing in lithium resource development, SoftBank intends to contribute to the growth of the battery industry in view of increasing demand for smartphones and other communication devices and the anticipated Mobility Revolution to be ushered in by electric vehicles.
The Whabouchi mine is expected to have an initial lithium mine life of approximately 33 years and the output from Nemaska's electrochemical plant is estimated to produce approximately 33,000 tonnes of lithium carbonate equivalent (LCE) annually.
For so long as it holds a minimum ownership interest of 5% in Nemaska, SoftBank will have the option each year to purchase up to 20% of Nemaska's lithium product output over the long term. SoftBank will also have the right to nominate a director to be appointed to Nemaska's board.
Nemaska Lithium president and CEO Guy Bourassa said: “Upon the completion of this transaction, SoftBank will be a new esteemed shareholder and customer for Nemaska Lithium and we are very pleased to welcome Softbank to our shareholder base and eventually welcome its nominee to our Board.
“As a global technology pioneer and leader, SoftBank's culture of innovation melds very well with our own corporate values and is a clear endorsement of our approach to producing environmentally friendly, low-cost lithium compounds.”
SoftBank Group chairman & CEO Masayoshi Son said: “This investment in Nemaska is of monumental importance to the SoftBank Group's strategy.
“We are extremely pleased to be further accelerating the Mobile Revolution, an era of IoT (Internet of Things) and electric vehicles enabled by the fusion of technology and energy storage.”
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Source: Company Press Release