M&A is set to continue" in the sector, Peker said, adding that...

M&A is set to continue" in the sector, Peker said, adding that miners that expand in size and scale could provide broader offerings to their customers and secure market share as well as rein in costs
Historically, original equipment makers (OEMS) like automakers have shied from taking upstream risk in miners because it's not their core competency, but they can't be counted out as buyers in this round of M&A, RBC's Peker said.
"The tightness in the feedstock market is definitely a concern for them. If one breaks rank it's possible that OEMS do acquire upstream assets, something a bit more meaningful than small company stakes, with significant offtake where they can control their destiny," he said.
Volkswagen said in March it plans to invest in mines to bring down the cost of battery cells, meet half of its own demand and sell to third-party customers.
Takeover approaches in Australia's lithium sector this year include Albemarle's $3.7 billion bid for lithium developer Liontown and Tianqi-Igo's approach for lithium explorer Essential Metals Ltd.