St George Mining has restructured its Lithium Star joint venture, with battery giant Amperex Technology Limited exchanging its 10% JV stake for a 12.5 million shareholding in St George at a 36% premium. This move consolidates lithium exploration under St George while giving ATL exposure to the Araxá niobium-rare earths project and offtake rights on future lithium production.
- ATL swaps 10% Lithium Star JV stake for 12.5 million St George shares at $0.16 each
- Lithium Star becomes wholly owned subsidiary focusing on lithium projects in Western Australia
- ATL secures rights to 25% of lithium output and gains exposure to Araxá rare earths-niobium project
- Share issue to ATL subject to shareholder approval in July 2026
- Araxá project recently upgraded with 70.91Mt at 4.06% TREO and strong development momentum
ATL Converts Lithium Star JV Stake into Strategic Equity
St George Mining (ASX:SGQ) has reshaped its Lithium Star joint venture, with Amperex Technology Limited (ATL), the world’s leading lithium-ion battery producer, trading its 10% JV interest for a direct shareholding in St George. ATL will receive 12.5 million shares at $0.16 each, 36% above the recent 30-day volume-weighted average price, valuing the deal at $2 million. This equity swap is poised to strengthen St George’s capital base while consolidating lithium exploration under its control.
Previously, Lithium Star was a 90/10 JV between St George and ATL, focused on greenfields lithium exploration in Western Australia’s spodumene-rich belt. With this restructure, St George will own 100% of Lithium Star, which remains committed to advancing lithium prospects at Buningonia and Lindville. ATL, meanwhile, secures a strategic foothold in St George and rights to 25% of any lithium production from these projects at a preferential price, aligning supply with its battery manufacturing needs.
Araxá Project Exposure Adds Rare Earths and Niobium Dimension
Beyond lithium, ATL gains indirect exposure to St George’s Araxá Project in Minas Gerais, Brazil, a world-class niobium and rare earths deposit adjacent to CBMM’s operations. St George acquired Araxá in early 2025 and recently announced a major resource upgrade, confirming 70.91 million tonnes grading 4.06% total rare earth oxides (TREO) and 0.62% niobium pentoxide (Nb2O5). This positions Araxá among the globe’s leading carbonatite-hosted deposits, with strong government backing and a seasoned local development team in place.
The Araxá resource upgrade, which includes a measured and indicated category of nearly 30 million tonnes, underpins St George’s dual-commodity strategy. The company is advancing feasibility and development studies, recently appointing Worley Engenharia to accelerate project delivery. This rare earths and niobium exposure complements ATL’s lithium interests, potentially broadening its critical minerals supply chain.
Deal Terms and Shareholder Approval
The share issue to ATL is contingent on St George shareholder approval scheduled for early July 2026. The transaction includes a buyback clause allowing ATL to repurchase its former Lithium Star shares if St George announces a JORC-compliant lithium resource at either Lindville or Buningonia, preserving ATL’s optionality. Additionally, ATL retains a right of first refusal to acquire up to 25% of lithium product from Lithium Star projects at a benchmarked price reflecting international market contracts with a minimum 8% discount.
John Prineas, St George’s Executive Chairman, emphasised the strategic nature of the partnership, stating that ATL’s transition from JV partner to shareholder highlights the company’s success in forging relationships with global critical minerals players. He reiterated that lithium exploration will continue methodically without detracting from the immediate priority of advancing Araxá towards development.
Outlook for Lithium and Rare Earths Development
St George’s consolidation of Lithium Star simplifies its lithium portfolio at a time when Western Australia remains the world’s premier hard-rock lithium province. The Buningonia and Lindville projects have identified priority targets warranting further exploration, although commercial lithium production remains an early-stage prospect.
Meanwhile, Araxá’s recent resource milestones and technical partnerships, including trials of innovative niobium processing technologies, position the project for potential dual revenue streams from rare earths and niobium. The company’s engagement with strategic partners and government support in Brazil are critical factors as St George pushes towards feasibility and development.
Bottom Line?
ATL’s strategic equity swap aligns lithium supply ambitions with St George’s rare earths growth, setting the stage for integrated critical minerals development.
Questions in the middle?
- Will shareholder approval for the ATL share issue proceed smoothly in July 2026?
- How will exploration results at Buningonia and Lindville influence Lithium Star’s development timeline?
- What impact will Araxá’s resource expansion and feasibility progress have on St George’s valuation and partnerships?