The Namibian Competition Commission (NaCC)has approved the sale of the Karibib lithium project to London-listed African Critical Elements.
African Critical Elements (ACE) is a holding company that was established by directors of Canadian company ILC Critical Minerals in order to buy shares in the Karibib lithium project.
The competition commission decided to approve the merger with conditions on 6 October.
“The transaction [has the] potential to stimulate investment, future lithium, rubidium, and caesium production, employment creation, skills transfer and broader economic growth in Namibia,” the commission said.
It found the sale was unlikely to reduce competition in the lithium sector.
“Conditions [are] specifically designed to ensure that these anticipated benefits indeed translate into tangible and meaningful outcomes for Namibians, particularly through workforce localisation, skills development, and increased participation of local suppliers, SMEs, and historically disadvantaged persons in the project’s value chain,” the commission said.
The Karibib lithium project consists of two mines – Rubicon and Helikon – which have been dormant since 2022 due to low lithium prices and the poor financial position of the majority shareholder.
The majority owner, Canadian company Lepidico, entered liquidation in 2025 and tried to sell its shares in the Karibib project to another Canadian company, ILC Critical Minerals.
However, ILC did not receive approval from the Toronto stock exchange for the transaction, leading the directors of that company to set up ACE to buy the project.
“ACE is not yet operational and is not presently active in Namibia. [It] was established as a holding company for the purpose of acquiring [Lepidico] and financing the development of the Karibib Project,” the NaCC said in its merger determination.
Prior to the final transaction, Lepidico holds 80% of shares in the project.
The remaining 20% are held by Huni-Urib, a Namibian company that has consistently opposed ACE’s purchase of the project.
