Tianqi Lithium, a Chinese mining company that produces lithium compounds and derivatives in China, is considering investing in Smart as part of its efforts to expand its holdings, reports Automotive News Europe.

The Chinese miner is in advanced talks to invest USD 100 million to USD 200 million in Smart, which may value the automaker at several billion dollars. An agreement could be reached in the next few weeks, although discussions could still be delayed or fall apart.

Also read: Review: Behind the wheel of Smart #1 in Malaysia, the Mercedes EV for people who can't afford a Mercedes

Smart has been exploring funding options to revive its compact vehicle as an all-electric brand, with an initial target of raising USD 500 million to USD 1 billion in fresh funds.

The Smart joint venture between Geely and Mercedes-Benz was officially announced in early 2020. Mercedes-Benz designers would style future Smart vehicles, while Geely would engineer them.

The joint venture's first new model, the #1, a small full-electric crossover, went on sale in China last year. A second model, the #3 compact crossover coupe, is set to go on sale later this year with exports to Europe slated to take place in 2024.

Also read: Proton's Smart EV, sold by Mercedes-Benz dealers - Hap Seng Smart is Pro-Net's first authorised dealer

In Malaysia, Proton announced that its subsidiary Pro-Net will be launching the Smart #1 by Q4 2023, followed by the Smart #3 after the model is launched in China and Europe.

Also read: Proton confirms Smart #3 will be launched in Malaysia, Smart #1 on track for Q4 2023 launch