Under a deal signed with Lithium Royalty Corp, Sayona will buy the right to acquire a 60 per cent interest in the Moblan project from Guo Ao Lithium.

The deal marks an impressive period of growth for Sayona which only recently completed the joint purchase of North American Lithium with Piedmont and fits the company’s goal for become North America’s biggest supplier of lithium.

The acquisition also follows a strong growth in the lithium price this year, although it has been falling in recent days. Lithium is a key component in lithium-ion batteries used in electric vehicles.

Brisbane also has lithium company Orecobre which recently merged with Galaxy Resources to create a $4 billion company.

Controlled Thermal Resources also has a joint headquarters in Brisbane and a lithium project in the Hell’s Kitchen region of California.

Sayona managing director Brett Lynch said the rise in the lithium price reflected the importance of securing quality supply and there was no better place to be than Quebec.

The Mobal project has high grade spodumene minrealisation and a resource estiate of 12.03 million tonnes at 1.4 per cent lithium oxide. It has already had 132 drillholes and established a 1.5km strike length.

Lynch said the the project was in a proven lithium mining province.

“Moblan is a tier one project comparable to any of the region’s top hard rock lithium mines. It has the potential for expansion and will be an important asset for Sayona’s future growth,” Lynch said.

“We have been monitoring opportunities for further expansion in Quebec and this ticks all the right boxes. There is a huge opportunity here for Sayona to develop a new lithium asset base in northern Quebec, adding to our Abitibi lithium hub.

“This will further drive our transformation into the leading lithium producer in North America, supplying its acclerating demand for this key battery metal.”