News: ESS UPDATE 1-IGO-Tianqi Lithium JV looks to beef up assets with Essential Metals bid

(Adds deal details, background)

Jan 9 (Reuters) - Australian miner IGO Ltd (IGO) on Monday said Tianqi Lithium Energy Australia (TLEA), its joint venture with Tianqi Lithium Corporation 002466.SZ , had proposed a A$136 million ($93.57 million) buyout bid for Essential Metals (ESS) as the JV looks to beef up its assets in Western Australia.

With the offer of 50 Australian cents per share representing a 44.9% premium to Essential's last close on Friday, Essential's directors have unanimously recommended shareholders vote in favour of the proposal in the absence of a superior offer.

The transaction is subject to a number of regulatory clearances, including approval from Australia's Foreign Investment Review Board (FIRB), a regulator that reviews foreign investments in the country.

The deal was announced at a time when companies are racing to capitalize on booming prices and demand of lithium, a key component of electric vehicle batteries, amid a global push to reduce carbon emissions.

Essential's portfolio includes the Pioneer Dome Project, located about 130 km (81 miles) south of Kalgoorlie in Western Australia.

"The ESS transaction provides an opportunity to accelerate lithium exploration to bring new resources to production," said Matt Dusci, acting chief executive officer of IGO.

IGO has a 49% stake in TLEA, with Tianqi Lithium holding the remaining interest. The transaction is expected to be completed by May 2023. ($1 = 1.4535 Australian dollars)