US lithium miner to go public following $571M SPAC deal

A company holding one of the largest US lithium resources is set to list on the Nasdaq following a $571 million merger with a special purpose acquisition company (SPAC).

On Thursday, HiTech Minerals, a subsidiary of Australia’s Jindalee Lithium (ASX: JLL), said it is combining with Constellation Acquisition Corp. I (US-OTC: CSTAF), a blank-check company backed by Antarctica Capital, to create a new company called US Elemental.

Under the terms, Jindalee will roll over its 100% interest in HiTech and is expected to hold approximately 80% or more of US Elemental.

The deal, says the Australian lithium miner, is intended to position the company closer to US capital markets, strengthen alignment with national priorities around critical minerals supply, and support the continued development of its projects. The company previously announced plans to create a US-listed entity last September.

The transaction, with an implied value of $571 million, is expected to close in the second half of 2026, subject to regulatory and shareholder approvals and cash balance requirements. Upon closing, US Elemental will trade on the Nasdaq under the ticker symbol “ULIT.”

Jindalee’s stock closed 2% higher in Australia, for a market capitalization of A$50.2 million. Constellation’s shares gained two-thirds to trade at $0.25 in New York, capitalizing it at $101.3 million.

Unlocking lithium asset

Jindalee chief executive officer Ian Rodger said the creation of US elemental would help “unlock the potential” of its lithium assets, headlined by the McDermitt deposit located in Oregon and near the Nevada border.

McDermitt is considered to be amongst the largest lithium development assets in the US, with a resource total of 21.5 million tonnes in lithium carbonate equivalent to support a multi-decade project life of 63 years.

According to a 2024 pre-feasibility study, the proposed mine is expected to generate an estimated $3.2 billion net present value (8%) after tax and 17.9% internal rate of return, with planned production of approximately 47,500 tonnes per year during the first decade. Its initial capital cost was pegged at approximately $3 billion.

Amid growing concerns over the domestic supply of critical minerals like lithium, the US government last year designated the McDermitt project for inclusion in its FAST-41 initiative, which aims to speed permitting for key resource developments nationwide.

Access to US markets

“The transaction is expected to position the company to access the capital and strategic partnerships needed to advance development,” Rodger said, referring to the merger with Constellation.

“Demand for battery materials continues to grow and there is increasing emphasis on developing domestic sources of supply. The McDermitt project, combined with the team’s experience and the scale of the resource, creates a strong platform for long-term growth,” commented Chandra Patel, chairman and CEO of Constellation and managing partner of Antarctica Capital.

In addition to McDermitt, US Element will also hold Jindalee’s other US lithium assets such as the Clayton North project in Nevada. To help advance these projects, the company is contemplating a capital raise of $20-$30 million, including $4 million from Antarctica Capital.

The SPAC deal follows a resurgence in the lithium mining space, with price of the battery metal rising by nearly 40% this year on the back of mine disruptions and an export ban by Zimbabwe.