China’s Tianqi Lithium is contemplating shopping for a minority stake in Good Car, the Geely-Mercedes three way partnership, as a part of the minicar maker’s newest personal funding spherical, in response to individuals conversant in the matter.

The Chinese language miner is in superior talks to take a position $100 million to $200 million in Good, a three way partnership between Germany’s Mercedes-Benz Group and Chinese language automaker Zhejiang Geely Holding Group, the individuals mentioned.

The transaction could worth Good at a number of billion {dollars}, the individuals mentioned, asking to not be recognized as a result of the matter isn’t public. An settlement may very well be reached as quickly as within the subsequent few weeks, the individuals mentioned.

Whereas discussions are superior, they may nonetheless be delayed and even crumble, the individuals mentioned. A consultant for Mercedes declined to remark, whereas representatives for Geely, Good and Tianqi didn’t instantly reply to requests for remark.

Good has been contemplating elevating funds as a part of its efforts to revive the compact car as an all-electric model, Bloomberg Information reported final yr. The corporate was initially focusing on elevating $500 million to $1 billion in recent funds, individuals conversant in the matter have mentioned.

Geely, owned by the billionaire Eric Li, and Mercedes-Benz formally introduced the 5.4 billion-yuan ($783 million) Good three way partnership, primarily based in Hangzhou Bay, Ningbo, in early 2020.

As a part of the settlement, Mercedes-Benz designers would fashion future Good automobiles and Geely would engineer them. With manufacturing primarily based in China, the enterprise would purpose to increase its portfolio to incorporate pure premium electrical and related automobiles.

Mercedes first launched Good in Germany in 1998, and introduced the quirky model to the US a decade later, with the preliminary two-seater mannequin focusing on city patrons squeezed for parking spots.

Its first new mannequin underneath the JV, the #1, is a small full-electric crossover; gross sales began in Europe this yr. A second mannequin, the #3 compact crossover coupe, is due in 2024.

Tracing its historical past to the development of its first lithium carbonate plant in 1992, Tianqi mines lithium in Australia and produces lithium compounds and derivatives in China. The Chengdu-based firm raised 735 million yuan in a Shenzhen preliminary public providing in 2010. Final yr, the corporate raised HK$13.5 billion ($1.7 billion) in a second itemizing in Hong Kong.