California lithium company to go public in $4.7 billion SPAC deal

Lithium developer Controlled Thermal Resources (CTR) will go public in the US through a $4.7 billion merger with blank-check firm Plum Acquisition Corp IV, the companies said on Monday.

Deals by special purpose acquisition companies (SPAC) have bounced back on Wall Street after years of muted activity, with companies turning to the alternative route to list.

The deal will allow CTR to advance its flagship Hell’s Kitchen project and commence stage 1 construction, the lithium and geothermal energy developer said.

Located in California’s Imperial Valley, the stage 1 construction is expected to include lithium carbonate production capacity of up to 25,000 metric tons per year, a 50-megawatt clean power facility and additional critical mineral production.

The firm has secured more than $285 million in private investment to date for the Hell’s Kitchen project.

“As AI adoption and hyperscale data center growth intensify across the United States, the need for resilient, low-carbon, 24/7 power is becoming a defining infrastructure constraint and a major issue of national security,” said CTR CEO Rod Colwell.

Energy-intensive data centers, which are vital physical infrastructure for artificial intelligence, are driving US power demand to record highs.

SPACs are shell firms that raise money through an IPO to merge with a private business and take it public.

The deal is expected to close in the second half and the combined company is expected to be listed on the Nasdaq under the ticker symbol “CTRH”.

Hall Chadwick advised CTR while Cohen & Company Capital Markets was Plum IV’s adviser.

(By Arasu Kannagi Basil; Editing by Shinjini Ganguli and Sriraj Kalluvila)