Proposed Settlement Does Not Solve U.S. Antitrust & Governance Concerns in $4.1B Lithium Saga

A few months ago I wrote an article about a proposed $4.1 billion transaction whereby Tianqi Lithium (“Tianqi”), a Chinese chemical…

Satellite image taken in 2018 shows the solar evaporation ponds on the Atacama salt flat in the Atacama desert. Satellite images captured by LandSat-8 via United States Geological Survey

A few months ago I wrote an article about a proposed $4.1 billion transaction whereby Tianqi Lithium (“Tianqi”), a Chinese chemical company and one of the world’s biggest lithium producers, agreed to purchase 62,556,568 “Series A shares” of Sociedad Química y Minera de Chile S.A. (“SQM”), a U.S.-listed Chilean chemical company and another of the world’s leading lithium producers, from Nutrien, a U.S.-listed Canadian company and the world’s largest provider of crop inputs and services (the “Nutrien-Tianqi Transaction”).

What is at stake in this case is the availability and pricing of lithium chemical products, which has a direct impact in, and is particularly critical for, the U.S. technology industry and the U.S. electric vehicle market.

Lithium carbonate and lithium hydroxide are principally used to pro…