The claims, which MetalsGrove will acquire for $60,000, are close to Huayou Cobalt's Arcadia lithium mine.

The project, including two mines and spodumene concentrators in the province’s northwest, has an after-tax net present value of C$1.2 billion.

The company has secured control of over 25% of the mineral rights for the private lands within its flagship project in Elko County.

US subsidies will support the growth of the top 3 lithium producer if the Livent and Allkem merger creating the new company goes ahead.

Lithium prices overshot last year driven by China but this year fresh supply, including from Africa, has led to a collapse in prices.

Rules for battery components should apply from 2024, while critical minerals will be covered from 2025.

Tianqi Lithium and Ganfeng Lithium closed up 6.5% and 7%, respectively, in Hong Kong on Wednesday.