Why Lithium Stocks Are Rising During Tuesday's Session

Lithium Americas Corp LAC, Livent Corp LTHM, Piedmont Lithium Inc PLL, Sigma Lithium Corp SGML, Standard Lithium Ltd SLI and Sociedad Quimica y Minera de Chile SQM shares are all trading higher Tuesday afternoon.

Shares of lithium companies at large are trading higher after Albemarle Corporation ALB disclosed it submitted an acquisition proposal to Liontown Resources.

What Happened?

Albemarle on Monday confirmed that it submitted a non-binding proposal to acquire all outstanding shares of Liontown by way of scheme of arrangement for $1.66¹ per share in cash, which values Liontown at $3.4 billion on an enterprise basis.

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Albemarle says, to highlight a commitment to the transaction, the company has accumulated a less than 5% stake in Liontown stock as of March 27, through on-market purchases.

Albemarle notes that the Liontown Board has not meaningfully engaged with Albemarle to facilitate its shareholders receiving the benefits of the proposal.