(Bloomberg) -- Diversified miner Mineral Resources Ltd. has acquired a nickel concentrator plant in Western Australia from Poseidon Nickel Ltd. to process its lithium ore into concentrate.

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The purchase will allow Mineral Resources access to develop the Lake Johnston plant, which has annual capacity of 1.5 million tons, as a lithium processing hub, it said in a statement Monday. It will also gain 10 mining leases and one exploration license in the surrounding Goldfields region in a deal worth A$15 million ($9.8 million).

The market for nickel has been thrown in chaos after a flood of supply from Indonesia caused prices to crash, forcing some Australian nickel producers to shutter operations. The Mineral Resources’ deal could mark the beginning of further acquisitions by lithium companies seeking to convert nickel concentrators to process the key battery material.

Read More: Top Miner BHP Stands Down 25% of Nickel Project Workforce: AFR

The acquisition of Lake Johnston formed part of the company’s plan to create a “third lithium processing hub” in Western Australia, Mineral Resources Managing Director Chris Ellison said in the statement. Once operational, it would be its first plant to include flotation capacity for lithium fines, he added.

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