Aug 5 (Reuters) - Lithium technology startup EnergyX has

made a $150 million bid for Galan Lithium's ( GLNLF ) assets in

Argentina, part of a strategy to consolidate acreage needed to

produce the electric vehicle battery metal amid low market

prices. 1

The offer, which included a cash component, shares in

EnergyX, project financing and a royalty payment, was first sent

on July 11 and the two companies are in negotiations, according

to EnergyX.

Galan said in a stock exchange announcement on Tuesday it

had recieved an unsolicited proposal to acquire its assets and

property for $50 million in cash from EnergyX.

The offer included a further $50 million in shares of

privately held EnergyX, while a further $50 million would be

made available for project finance, it said.

Galan had been seeking to negotiate a confidentiality

agreement with EnergyX, but was waiting to hear back from the

San Juan-headquartered company, it said.

Galan shares traded down 16% at A$0.12.

The bid comes as prices for lithium have tumbled in the past

year, fueling layoffs at industry leader Albemarle and

others. Teague Egan, EnergyX's CEO, said he was making the move

for Galan's Argentina acreage to consolidate acreage amid low

prices.

"There's no doubt in my mind that lithium demand will

continue to grow later this decade," Egan said.

The head of EnergyX's South American operations, Juan Carlos

Barrera, is a consultant to Galan's board, according to the

companies' websites.

General Motors ( GM ) and a consortium led by South Korean

conglomerate Posco Holdings ( PKX ) are investors in

EnergyX, which has offices in Austin, Texas.

EnergyX, which in 2022 lost out on a bid to develop

Bolivia's Salar de Uyuni lithium deposit, has a pilot project in

northern Chile and is developing projects in North America.