Essential Metals (ASX:ESS) shareholders have not approved a proposal to be acquired by Tianqi Lithium Energy Australia for $0.50 per share.

The deal would have needed approval by 75% of votes cast, however, only 68.5% voted in favour.

Mineral Resources (ASX:MIN) recently acquired a 19.55% stake in Essential Minerals after lodging an initial substantial holding notice.

The company's will now have to decide on their next steps.