Liontown Resources' shares shot up 11.5% after the firm's board backed a refreshed A$6.6 billion ($4.3 billion) bid from Albemarle Corp., a battery material producer mogul.

Due to their lower values and immediate need for cash, emerging Australian lithium companies are seeing an increase in buyouts as some of the largest lithium producers in the world and other buyers rush to secure supplies.

The latest cash offer of A$3 per share is 20% greater than Albemarle's offer of A$2.50 per share made in late March, which the target had rejected as being too low. It also represents a premium of 14.5% over Liontown's most recent close of A$2.62 on September 1.

Albemarle made four offers, the first two of which were A$2.20 per share on October 20 of last year and A$2.35 in March, before the rejection of A$2.50 was made public.

In response to the news of the offer, Liontown shares rose to A$2.92, their highest level since July 14.

Liontown stated that its board intended to unanimously recommend shareholders vote for the new offer in the absence of a better offer and after the conclusion of an independent expert's report to evaluate the deal.

According to a statement from Liontown, Albemarle, the largest producer of battery material in the world, has been given permission to conduct exclusive due diligence for a set amount of time and to sign an agreement for the implementation of the scheme that will benefit both parties.

Since Chile, another major producer, revealed a plan to nationalize its industry in April, projects in top supplier Australia have become more appealing than those in Chile, where lithium is in high demand for electric vehicle batteries.

With first lithium production from its flagship Kathleen Valley project, one of the largest and highest-grade hard rock lithium deposits in the world, scheduled for mid-2024, Liontown controls two significant lithium deposits in Western Australia.