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Bacanora Lithium: Takeovers

Question for Department for Business, Energy and Industrial Strategy

UIN HL1006, tabled on 10 June 2021

To ask Her Majesty's Government what assessment they have made of the potential consequences of a takeover of Bacanora Lithium by Ganfeng Lithium; and in particular, whether such a takeover could restrict the UK's access to lithium supplies.

Answered on

23 June 2021

Mergers and takeovers are primarily commercial matters for the parties involved. The Government has powers under the Enterprise Act 2002 to intervene in transactions which raise national security concerns. The Government has recently strengthened those powers through the National Security and Investment Act 2021.

The Government is aware of this proposed transaction and is monitoring developments closely.

The Government recognises the strategic importance of securing the UK’s access to lithium supplies and is supporting the domestic extraction of critical “rare earth” materials, including lithium. For example, we are part funding Cornish Lithium and Geothermal Engineering to build a zero carbon, lithium extraction pilot plant at an existing site in Cornwall through the Government’s Get Building Fund.