Home Energy Storage Australia’s Prospect Resources in talks to sell stake, lithium supply to Russia’s Rosatom
Australia’s Prospect Resources in talks to sell stake, lithium supply to Russia’s Rosatom

Australia’s Prospect Resources in talks to sell stake, lithium supply to Russia’s Rosatom

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Australian lithium developer Prospect Resources Ltd (PSC.AX) said on Thursday it has signed a memorandum of understanding with a unit of Russia’s Rosatom that could see the latter buy a stake in Prospect as well as supplies of the sought-after metal.

The discussions are with Uranium One, a wholly owned subsidiary of the Russian state nuclear energy firm, and are incomplete and ongoing, Perth-based Prospect said in a stock exchange filing.

It didn’t disclose the size of the stake Uranium One might buy in Prospect, worth about A$26 million ($18 million) by market value before the accord was announced, nor financial terms of the potential lithium supply deal. Prospect shares jumped 14% on Wednesday following the company’s statement.

Though prices for lithium, a key component of batteries used in cell phones and electric vehicles, have seen a 50% drop since 2018, industry players see this as a buying opportunity to invest in companies associated with the white metal. Demand for lithium is widely expected to spike by 2025.

After a 90-day period to complete due diligence, Prospect said the agreement would allow Uranium One to negotiate acquiring at least 51% of Prospect’s future lithium production from its flagship Arcadia Lithium Mine in Zimbabwe.

Source: reuters
Anand Gupta Editor - EQ Int'l Media Network

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