LONDON (Alliance News) – Rare Earth Minerals PLC said Tuesday that it had increased its interest in Bacanora Minerals Ltd to 5% from 3.17%.

Rare Earth Minerals bought shares totalling GBP317,000. This interest, when aggregated with its 30% direct interest in the Fleur- El Sauz Joint Venture brings its total economic interest in the Fleur- El Sauz Lithium Joint Venture in Northern Mexico to around 33.5%.

Chairman David Lenigas cited Tesla Motors Inc’s recently announced plans to build a ‘Gigafactory’ in the US to produce significant quantities of lithium ion batteries, and its potential to increase global demand for lithium, as the reason it had increased its overall exposure in the lithium project.

Shares in Rare Earth were trading up 2.3% at 0.450 pence Tuesday afternoon.

By Hana Stewart-Smith; [email protected]; @hanassallnews