Chinese Battery Giant Invests in Chariot Resources, Boosting Lithium Market
In a significant move indicating a rapid recovery in the lithium sector, Chariot Resources has attracted a major Chinese battery materials group to its share register. The company has signed a binding agreement to issue 9.5 million shares at 15 cents per share, a slight premium over the current market price of 14.5 cents.
This deal will inject $1.425 million into Chariot's finances. Additionally, Jiangsu Greatpower NexEnergy Technology, an affiliate of Shanghai Greatpower Nickel and Cobalt Materials, will receive 19 million free-attaching unlisted options in Chariot, exercisable at 30 cents for two years. Completion of the transaction is pending Chinese government approval and is expected within five business days, with a final deadline set for April 15, 2026.
Strategic Partnership and Future Prospects
The equity investment appears to be just the beginning, as Chariot management has confirmed advanced discussions with Greatpower regarding project-level financing and offtake frameworks for its Nigerian lithium portfolio. These talks may include offtake prepayment funding for early small-scale mining and broader exploration funding across the portfolio.
Chariot Resources executive chairman Shanthar Pathmanathan expressed enthusiasm about the partnership, stating, "We are delighted to welcome Greatpower onto our register and look forward to them increasing their stake as the relationship develops. We see this as a powerful alignment with a globally connected battery materials group."
The proposed framework under discussion could also involve:
- Exclusive offtake rights over early small-scale mining production.
- Options for Greatpower to fund exploration and development across the Nigerian portfolio.
- Potential cooperation on electrified mining equipment.
Background and Project Details
This new relationship aligns with a strategy Chariot has been building since mid-2025, when it agreed to acquire a 66.667% interest in a four-cluster Nigerian hard-rock lithium portfolio through a joint venture entity, C&C Minerals, with local partner Continental Lithium.
Field work has already yielded promising early results. Verification rock chip sampling at Chariot's Fonlo and Iganna projects in southwest Nigeria returned lithium oxide grades ranging from 2.66% up to an impressive 6.59%, with up to 0.15% tantalum pentoxide and one sample showing caesium above the laboratory's upper detection limit. The company plans mineralogical work and metallurgical testing as part of a staged approach to transition from artisanal workings to formalised small-scale mining.
Chariot has outlined an initial 2,000 to 4,000-metre diamond-drilling program at Fonlo and Iganna, set to begin after the Nigerian portfolio acquisition is completed. Fonlo is described as hosting a near-vertical dyke swarm with over six kilometres of strike, while Iganna is interpreted as a stack of shallow-dipping pegmatite sills that could add significant scale if drilling confirms continuity.
Acquisition Progress and Market Outlook
The acquisition remains a key step, with Chariot varying the original share sale agreement in December to tighten exclusivity and non-circumvention provisions, extending the end date for conditions precedent to May 5, 2026. Chariot also agreed to finance licence transfers and closing costs by advancing US$379,195 to C&C Minerals via a convertible shareholder loan, backed by a corporate guarantee from Continental.
In the battery metals world, offtake-linked project funding is often seen as a mark of maturity. If the discussions with Greatpower progress from framework talks to signed project finance and offtake agreements, Chariot's small-scale mining pathway at Fonlo, Iganna, Gbugbu, and Saki could shift from concept to concrete schedule.
With lithium prices on the rise again, the timing of this partnership between Chariot and Greatpower may prove to be ideal. Drilling in areas with surface expressions showing 5 to 6% lithium oxide grades promises exciting developments ahead, making this a space to watch closely.
