October 4, 2023 (Source: Reuters) 
Rinehart’s company Hancock Prospecting raised its stake to 14.67%, putting it in a strong position to negotiate with Albemarle, the world’s biggest lithium producer, whose proposed takeover would require support from 75% of votes cast.

Australia’s richest person has been adding to her Liontown holdings since early September, when Albemarle, the world’s biggest lithium producer, was granted access to Liontown’s books after revising a takeover proposal.

“All you can do is take it on face value she wants to get greater exposure to the lithium market,” said David Lennox at wealth manager Fat Prophets in Sydney.

Liontown’s Kathleen Valley lithium project in Western Australia is regarded as one of the world’s most promising lithium deposits and the developer has already agreed to supply Ford with the battery raw material.

Hancock has questioned whether Liontown has the expertise to bring Kathleen Valley on line within cost and time frame estimates, offering its services. It has also said it may seek a position on Liontown’s board. Hancock declined to comment further on Wednesday.

The move comes as part of a surge of interest in Australian lithium assets amid the clean energy transition.

Liontown and Albemarle declined to comment on Hancock’s move.

Hancock said it paid up to A$3 a share for its stake. Albemarle has tentatively offered A$3 a share for Liontown, valuing it at $4.3 billion.

Liontown shares rose 0.5% to A$2.965 on Wednesday, up around 120% this year.

Last week, Liontown raised the estimated capital cost for its Kathleen Valley lithium project by 6% to A$951 million ($611 million) but confirmed it would meet its target for production to start in mid-2024.