Global Lithium soars 50% on A$333M Titan takeover

Global Lithium Resources (ASX: GL1) shares soared nearly 50% on Tuesday after the Australian developer agreed to a A$333-million ($237-million) cash takeover by UAE-headquartered Titan Australia Mining Pty Ltd.

The stock jumped as much as 62.4% to A$1.08 after resuming trading following a halt, before closing at A$0.995, its highest finish since early January 2024. Titan Australia, part of Titan Lithium, has offered A$1.15 a share, a nearly 73% premium to Global Lithium’s Sept. 18 closing price of A$0.665.

“This proposed acquisition reflects growing UAE investment in Australia’s critical minerals sector, and the important role cross-border capital can play in developing resilient and diversified global supply chains, consistent with government policy,” Liz Humphry, a partner at Clifford Chance, the law firm advising Titan, said.

The transaction gives Titan access to Global Lithium’s Manna project in Western Australia as the UAE company builds a vertically integrated business spanning lithium resources and downstream processing. 

It also offers Global Lithium shareholders cash certainty during a volatile period for lithium prices and removes some of the financing and construction risk associated with developing Manna.

Manna funding

Titan has pledged a A$120-million ($85-million) loan facility for Manna, which Global Lithium is targeting for a final investment decision by the end of 2026. Construction is expected to begin after the decision, with first spodumene shipments targeted for June 2028.

Global Lithium said the financing would mitigate execution risks as the company advances the project during a period of volatility in lithium markets.

The takeover comes as weaker electric-vehicle sales have pressured lithium-sector valuations, even as longer-term demand expectations remain supported by the energy transition and expanding battery-storage markets.

Global Lithium is also backed by billionaire Chris Ellison, whose Mineral Resources (ASX: MIN) holds a stake of more than 9% in the developer.

The company’s board has unanimously recommended shareholders vote in favour of the scheme, saying the cash proposal is in their best interests given lithium-price volatility and the development and construction risks facing Manna.

Integrated supply

Titan is developing a large-scale refinery in Abu Dhabi designed to produce battery-grade lithium carbonate and hydroxide for electric-vehicle batteries and other applications.

Acquiring Global Lithium would give Titan a potential long-term source of Australian feedstock for those downstream operations, supporting its strategy of controlling both resources and processing capacity. Titan has the goal of becoming the world’s largest lithium producer by 2030.

The transaction remains subject to shareholder and other required approvals. Global Lithium expects to hold a scheme meeting in December, with implementation scheduled for mid-January 2027.