Altius Minerals Strengthens Battery Metals Position Through C$520 Million Lithium Royalty Acquisition

In a move signaling confidence in the long-term lithium market outlook, Altius Minerals has committed to acquiring Lithium Royalty in an all-stock and cash transaction valued at C$520 million. The acquisition, formalized through a definitive agreement announced on December 22, enables Altius shareholders to elect between receiving C$9.50 per share in cash or 0.24 Altius shares for each Lithium Royalty holding they own.

Strategic Expansion into Diversified Lithium Assets

The transaction represents a significant deepening of Altius’ involvement in the battery metals sector. Upon closing, Altius will absorb a comprehensive suite of 37 lithium royalties spanning the full project lifecycle—from current production facilities through early-stage exploration initiatives. None of these arrangements involve streaming agreements, differentiating the portfolio structure.

The collection includes four royalties tied to operational assets, three of which commenced production in 2025 and are actively ramping up or expanding capacity. An additional 12 projects have advanced to maturity with finalized feasibility studies, while between three and five assets target commercial production windows between 2026 and 2030. This staged development pipeline provides multiple catalysts for revenue generation over the coming years.

Geographic Diversification and Production Diversity

Risk mitigation anchors this portfolio strategy. Assets concentrate in established jurisdictions—primarily Canada, Australia, and South America—reducing geopolitical exposure. The holdings span both extraction methodologies, encompassing brine-based operations alongside hard-rock mining ventures. This dual-approach exposure mirrors the diversification sought by lithium ETF managers and institutional investors building balanced commodity positions.

Revenue projections hinge on commodity price trajectories. At current spot valuations, Altius anticipates the acquired portfolio will generate between US$29 million and US$43.7 million in annual revenue by 2030. These figures assume sustained market demand and stable operating conditions across the underlying projects.

Market Context and Demand Outlook

The timing of this acquisition reflects evolving market dynamics. Lithium carbonate equivalent prices compressed to multi-year lows throughout 2025, hovering beneath the US$9,000 per metric ton threshold for extended periods. Despite near-term pricing pressure, demand indicators remain robust, extending well beyond the electric vehicle sector.

Global lithium demand is projected to surpass 1.5 million metric tons of lithium carbonate equivalent during 2025. Industry analysts anticipate supply deficits could resurface as early as 2026, reversing years of oversupply conditions that pressured valuations. Altius Chief Executive Brian Dalton characterized lithium as having “emerged as a mainstream scale mined commodity,” emphasizing the acquired portfolio’s advantages: extended resource lives, competitive cost structures, and jurisdictional stability.

Transaction Timeline and Regulatory Path

Completion remains subject to shareholder approval at a special meeting scheduled no later than March 10, 2026. Assuming approval, the transaction is expected to close during the first quarter of 2026, after which Lithium Royalty shares will delist and the entity will surrender its Canadian reporting issuer status.