Lithium miner Mineral Resources will get a footprint in China under a deal with a global battery chemical leader to secure supplies and joint processing.
MinRes and United States-headquartered Abermarle, one of the world's largest producers of lithium for the electric vehicle industry, have announced a revamp of the two companies' joint venture.
"Our Australian lithium assets are core to Albemarle's strategy to build a globally diversified portfolio of best-in-class assets and resources," Albemarle CEO Kent Masters said on Thursday.
MinRes will get a half share in Albemarle's Qinzhou and Meishan plants in China, subject to regulatory approval, in return for Abermarle bankrolling a processing plant in Kemerton, Western Australia.
In the Pilbara, MinRes will increase its interest in the joint Wodgina Lithium Mine Project from 40 per cent to 50 per cent and will operate the Wodgina mine on behalf of the joint venture.
Qinzhou has a capacity of 25,000 tonnes per annum and will undergo modifications to be able to convert Wodgina spodumene by early 2024.
The Meishan plant, which is under construction with a designed capacity of 50,000 tonnes per annum, is scheduled to be commissioned by year-end 2024.
Albemarle will continue to operate Meishan and Qinzhou.
In Australia, Albemarle will increase its stake in the Kemerton, Western Australia processing plant from 60 per cent to 85 per cent.
Set to be one of the world's largest lithium production facilities, Albemarle will operate Kemerton trains one and two on behalf of the joint venture, with the plant to be fed by the WA Greenbushes mine.
MinRes managing director Chris Ellison said the deal cements the company's place as a world leader in lithium mining and leverages Albemarle's strong track record in battery chemical production.
"MinRes is proud to operate in Western Australia, a jurisdiction that leads the world in ethical mining practices and is backed by governments focused on growing the battery minerals supply chain," he said.
By growing the battery chemicals business and expanding into global chemical marketing, MinRes will become one of the world's largest fully integrated lithium chemical suppliers to auto manufacturers.
Under the deal, Albemarle and MinRes will market their own share of lithium products converted from Wodgina spodumene.
MinRes will fund half of the capital costs for downstream conversion to process Wodgina spodumene, starting with an initial $US350 million ($A513 million).
"We also continue to study options to invest in capacity for future downstream lithium production in Australia," Mr Ellison said.
Albemarle said it expects to pay MinRes up to $US150 million ($A220 million) when the deal is completed, which is also subject to Australian approvals.
Albemarle expects its lithium sales to accelerate at least 30 per cent this year and says growth potential extends well beyond EVs.
