Nemaska Lithium Inc NMKEF

better catl than caq to invest in lithium

[Tcheck]

China's CATL    will buy more
than 10 million shares of Neo Lithium Corp    to become the
company's third-largest shareholder, the latest in a string of
investments by Chinese companies into South American lithium
projects.
    The deal, announced on Monday, comes as demand for the
electric vehicle battery metal is expected to triple over the
next five years as automakers shift their focus away from
internal combustion engines to EVs.
    Contemporary Amperex Technology Co Ltd (CATL), which
supplies lithium iron phosphate batteries to Tesla Inc   ,
will pay C$8.5 million ($6.5 million) for its stake in
Toronto-based Neo Lithium, the companies said on Monday.
    CATL will also gain one seat on Neo Lithium's board and sit
on the company's technical committee, where it will help Neo
draft a feasibility study for its Tres Quebradas Lithium project
in Argentina's northern Catamarca province.
    That study will help Neo Lithium attract more investors and
firm its timeline for opening the project, which the company
hopes will initially produce 20,000 tonnes of lithium.
    The deal is expected to close later this year after Chinese
government approval. BlackRock Inc    will remain Neo
Lithium's largest shareholder.
    Shares of Neo Lithium jumped 30 percent to C$0.75 in midday
trading.
    Neo Lithium says it will retain full control over the
project's lithium, though China is the world's largest consumer
of the white metal and the world's largest EV market. Chinese
companies in recent years have invested in lithium projects
across Chile and Argentina.  
    The deal with CATL was at a 45 percent premium to Neo
Lithium's Friday closing stock price. To abrogate CATL's
concerns about the premium, several Neo Lithium executives
agreed to buy roughly 483,000 shares at the same price.
    "We justified the valuation with our own pockets," Waldo
Perez, Neo Lithium's chief executive, told Reuters.


where is our premium ?