The bid is the latest move by lithium leader SQM to shore up alternative lithium projects. The Chile-based company has demonstrated its willingness to invest in early stage projects by first investing in Australia's Wesfarmers, four years ago, which was developing a lithium mine at Mt Holland and a hydroxide project at Kwinana, south of Perth.

In August, SQM Lithium Ventures, the corporate venture arm of SQM's lithium business, announced its first investment in Electric Era, a company seeking rapid deployment of low-cost, high-power charging infrastructure for electric vehicles (EVs). SQM Lithium Ventures was launched in December 2022 by SQM to invest in growing companies solving lithium, water and electromobility challenges.

It has also invested in Pirra Lithium, taking a 40% stake in the unlisted company on Monday. Pirra was put together by gold duo Calidus Resources and Haoma Mining, to assess their Pilbara pegmatite potential with a planned initial IPO being prepared, but yet not launched.

SQM's aggressive strategy is both an endorsement of the Andover ground's potential and the lithium market in general, the latter which has come off the boil this year.

SQM is possibly seeing the current market as a potential low point and hence a good time to buy.

It may also have been slightly spooked by Australian mining magnate Gina Rinehart's recent aggressive buying of shares in Australian lithium developer Liontown, a strategy that stymied what looked like a generously priced takeover bid by fellow lithium major Albemarle.

Azure

A stunning 12 months for Australia-based Azure Resources could be set to culminate in it being taken over by global lithium major SQM for A$1.63 billion (US$1.02 billion) cash, equivalent to A$3.52 per share. Shares in Azure were trading at about 20c this time last year, with SQM buying a 20% stake in Azure for A$20 million in January.

One of Azure's major shareholders, Deutsche Balaton, has said it will accept the offer in the absence of a superior bid. DB owns 10.8% of Azure.

Fascinatingly, there was no mention of the intentions of the second largest shareholder on the Azure register (after SQM), billionaire Australian prospector Mark Creasy.

Creasy holds 13.2% as well as 40% of the Andover lithium project, which SQM is evidently very bullish about.

Andover, in Western Australia's West Pilbara region, doesn't yet have a resource, though an exploration target of 100-240 million tonnes grading 1-1.5% lithium oxide for some of the ground is in the frame.

Whatever the backdrop, shareholders of the Tony Rovira-led Azure have plenty to cheer about.

Shares in Azure were up 42% to A$3.48 in midday Sydney trade.