Who says lithium is in the crapper? Not Wesfarmers (ASX:WES).

The massive $40 billion conglomerate has launched a lucrative takeover offer for Kidman Resources (ASX:KDR), which owns 50 per cent of the Mt Holland lithium project in Western Australia.

Wesfarmers is definitely better placed than Kidman to raise the $600m it needs to get this large project up and running in 2022.

The $1.90 a share offer is a huge 47 per cent premium on Kidman’s last closing share price.

It values the company at a massive $776m (currently $522m).

The last time Kidman hit $1.90 a share was June 2018, when it had just signed an offtake agreement with Tesla and all was well(ish) in the lithium world.

And it appears Kidman’s top three shareholders (16 per cent), joint venture partner SQM, and the Kidman board are already … on board.

“The board of Kidman together with its advisors, has carefully considered the proposal and has concluded that it is the best interests of Kidman shareholders to engage further with Westfarmers on an exclusive basis with a view to finalising a binding transaction capable of being put to Kidman shareholders,” the company says.

Westfarmers will now undertake a due diligence period of up to three weeks. After this, if the companies enter into a binding deal, shareholders will get to vote on the transaction.

In March, Wesfarmers tables a takeover offer for rare earths producer Lynas (ASX:LYC) which valued it at $2.25 a share — a 44.7 per cent premium to Lynas’ last closing price.