(Yicai Global) Aug 11 -- China’s Ganfeng Lithium has completed its GBP190 million (USD253 million) takeover of Bacanora Lithium, a British company that is developing the world’s biggest lithium mine project in Mexico.

Ganfeng Lithium’s unit Shanghai Ganfeng International Trading has acquired all of Bacanora Lithium, after previously owning a 28.9 percent stake, the Xinyu-based firm said on Aug. 8.

The move will help Ganfeng Lithium expand business and boost competitiveness, and it is in line with the company’s upstream and downstream integration and development strategy in the new energy vehicle industry, it added.

Bacanora’s lithium clay project in the Sonoran Desert has about 8.8 million tons of lithium carbonate equivalent, making it the world’s largest lithium mine project. Expected to begin operation next year, the project is estimated to have an internal rate of return before tax of 26 percent, with a payback period of four years, according to a report by Haitong International Securities Group.

Founded in London in 2018, Bacanora Lithium is listed on the London Stock Exchange’s Alternative Investment Market. The Sonora project, in which it owns a 100 percent stake, is its main asset.

China’s lithium carbonate prices have surged to about CNY471,000 (USD69,880) a ton now from CNY503,000 in mid-April and CNY364,000 in February.

With prices surging due to short supply, Ganfeng Lithium has been working hard to acquire resources. In July, it offered as much as CNY6.5 billion (USD962 million) to buy Argentine company Lithea, which would be its largest acquisition to date.

Shares of Ganfeng Lithium [SHE: 002460] closed 1.1 percent up at CNY91.49 (USD13.58) today. Its Hong Kong-listed stock [HKG: 1772] climbed 2.1 percent to HKD73.30 (USD9.34).

Editors: Shi Yi, Futura Costaglione