US chemical manufacturing company Albemarle has improved its takeover bid for Liontown Resources to $4.3bn (A$6.6bn).

According to the new proposal, Albemarle will acquire all of the shares of Liontown for A$3 apiece. The revised proposal is subject to several conditions before it becomes binding.

The board of Liontown has recommended the proposal and stated that it will pave the way to enter into a mutually acceptable deed.

It accepted the revised proposal after careful consideration and has agreed to grant Albemarle time to conduct due diligence before moving forward with a binding proposal.

Any such proposals are also further subject to approval from its shareholders along with regulatory approvals.

Albemarle stated that if the transaction is successful it can enhance its energy storage business and build on its resource base.

The company also plans to expand its position in Australia, where it already has expertise in spodumene resources and lithium conversion facilities at Greenbushes, Wodgina and Kemerton.

In March 2023, Albemarle submitted a $1.58 buyout bid, which was rejected by the company. Later in the same month, the offer price was increased to $1.661 per share.

Liontown stated that the proposal comes at a time that coincides with the recent softness in companies exposed to the lithium sector and the pre-production status of its Kathleen Valley project in Western Australia.