PRINCETON, N.J. (AP) — Chemical maker Rockwood Holdings is buying Talison Lithium for $732 million in order to strengthen its lithium business.

"This acquisition will enable us to better serve both our existing global customers as well as Talison's current lithium concentrate customers in China and the rest of the world," Rockwood Chairman and CEO Seifi Ghasemi said in a statement on Thursday.

Based in western Australia, Talison has operations there and in Chile and produces lithium used in batteries for consumer electronics, electric bicycles, buses and passenger vehicles.

Rockwood will pay $6.50 Canadian dollars ($6.58) per share.

Talison currently has about 108.8 million outstanding shares, according to FactSet. Rockwood Holdings Inc. said Thursday that it plans to finance the buyout with cash on its balance sheet and new debt financing.

Talison Lithium Ltd.'s board unanimously recommended the deal to shareholders. The company's stockholders must still approve it.

Earlier this month Rockwood reported that its second-quarter net income more than doubled, but the Princeton, N.J. company's revenue fell due to unfavorable currency exchanges.