Lithium Americas Corp says it has entered into a definitive arrangement agreement to acquire all the outstanding shares of Canada-based Millennial Lithium with assets in Argentina for $400 million in cash and stock, an offer that topped a previous bid by China’s Contemporary Amperex Technology Co Ltd (CATL).

The deal was announced on Wednesday after a deadline to allow CATL to respond to Lithium America’s offer for Millennial had expired, Kallanish reports. Lithium America offered CAD 4.70/share ($3.79/share), payable in common shares of Lithium Americas stock and CAD 0.001 in cash per share. That offer had been announced earlier this month. That means that Millennial shareholders will own about 9.1% of Lithium Americas. CATL had offered CAD 3.85/share last September. CATL is not expected to challenge the deal, officials say.

Interest in lithium operations and companies is growing as is demand for the metal used in electric vehicle batteries and battery storage facilities.

“This transaction is a rare opportunity to add a complementary lithium brine project and leverage our expertise developing Cauchari-Olaroz as the largest new lithium carbonate operation to come online in over 20 years,” says Lithium Americas president and ceo Jonathan Evans in a statement.

Canada-based Lithium Americas says that Millennial’s 100% owned Pastos Grandes lithium brine project in Argentina represents an attractive regional growth opportunity for the company. The project is expected to produce 24,000 tonnes/year of lithium carbonate for up to 40 years. Construction is expected within two years. Lithium Americas  is developing the Cauchari-Olaroz brine project about 100 kilometres away. The new acquisition will boost its long-term growth strategy in Argentina, it says. The company is also developing the Thacker Pass lithium project in Nevada. A definitive feasibility study is expected in 2022.

The transaction provides “significant value” to Millennial shareholders, says president ande ceo Farhad Abasov in a statement.

The CATL offer had topped an earlier bid from last July of CAD 3.60/share by Ganfeng Lithium, which is the largest shareholder in Lithium Americas. Its Lithium Americas’ board representative was recused on the new plan.

Lithium Americas, with headquarters in Vancouver, British Columbia, has lithium projects in Jujuy, Argentina, and the US state of Nevada.