Australian miner Galan Lithium says it has rejected an unsolicited $150 million offer for two of its fully owned lithium projects in Argentina.

The bid came from Chinese battery materials group Zhejiang Huayou Cobalt and French carmaker Renault Group, Kallanish understands. Galan says the proposal is “opportunistic and undervalues the company’s key assets.”

“The board also believes that completion of offtake and financing arrangements for Phase 1 of HMW [Hombre Muerto West] will occur in the short term, leading to a more certain and superior outcome for Galan shareholders relative to the indicative proposal,” the miner adds in a statement.

Huayou and Renault were interested in the Hombre Muerto West and Candelas projects, located in salt flats in Argentina. Production at Hombre Muerto West is planned to start in the first half of 2025, with a first phase capacity of 5,400 tonnes/year of lithium carbonate equivalent (LCE).

Output will be expanded across three further phases, reaching a total production of 60,000 t/y of LCE. Galan holds an offtake agreement with Swiss metals group Glencore, which has provided financing of $100m.

Candelas, which will be incorporated in the final phase of Hombre Muerto West, saw its resource estimate grow by 150% to 1.6m t of LCE earlier this year. 

Shares in Galan closed 38% higher on Thursday, bringing its total market capitalisation to AUD 116m ($73m), or around half of Zhejiang’s and Renault’s bid. Galan also has a lithium exploration project in Australia.