Hertz Lithium Inc., a leading multinational energy company, announced today that they have signed a binding agreement to acquire Canuck Lithium Corp. for a total purchase price of $55 million. The acquisition is expected to bolster Hertz Lithium’s lithium-ion battery research and development capabilities, as well as their production capacity.
This move marks Hertz Lithium’s latest foray into the Canadian lithium market, where they already own significant control of processing and refining infrastructure. With the acquisition of Canuck Lithium Corp., Hertz Lithium now has access to a diverse resource base from which to source critical raw materials. The company estimates that the acquisition will enable them to further reduce their cost of production and position them to better compete in the lithium market.
Canuck Lithium Corp. has a long history of exploration and development of minerals in British Columbia. Their flagship project, the Canuck Lithium Deposit, is one of the largest deposits of lithium in the western world. As part of the acquisition, Hertz Lithium may also benefit from the expertise of Canuck Lithium’s management and geological staff.
With the acquisition of Canuck Lithium, Hertz Lithium plans to begin production of lithium-ion batteries in 2022. This move is in line with their vision to become a major supplier of advanced energy storage systems. The company also sees the acquisition as an opportunity to reduce the cost of production of lithium-ion batteries and increase their market share.
Overall, the acquisition of Canuck Lithium Corp. is a great move by Hertz Lithium Inc. to solidify their presence in the lithium market. The enhanced production capacity and access to a diverse resource base should position them to become a major player in the lithium-ion battery industry.