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Chinese Lithium Buyers Finally Arrive in North America

A new era of Chinese lithium interests in Canada has begun, with the conclusion of a $135 million investment, by Shanghai-based Sinomine Resource Group of Cabot Corporation (NYSE:CBT) of its Specialty Fluids business, including the TANCO Lithium Mine in Manitoba. The impact of the acquisition has the potential to reach other North American lithium companies, in particular QMC Quantum Minerals Corp. (TSX.V: QMC) (OTC: QMCQF) located just 20km to the North of the project. Other lithium players in North America that could be impacted include Albemarle Corporation (NYSE:ALB), Nemaska Lithium (OTC: NMKEF) (TSX: NMX), and Frontier Lithium Inc. (TSX.V:FL) (OTC:HLKMF).

The Sinomine entry is not the only Chinese interest that has entered the North American continent as of late. Lithium-ion battery producer Ganfeng Lithium recently acquired interests in clay deposit projects for the purpose of lithium production in Mexico—which SRK Consulting has estimated to contain a total lithium carbonate equivalent of 8.8 million tons.

Despite recent lithium price fluctuations, interest ... Click here to view full article