Lithium is a key metal used in electric vehicle batteries, and the demand for it is expected to soar in the coming years as the world transitions to cleaner energy sources. Two major lithium producers, Livent and Allkem, have announced a merger deal that will create a global leader in the lithium chemicals industry.
The merger, valued at $10.6 billion, will combine Livent’s expertise in lithium processing technologies with Allkem’s low-cost assets in Argentina and Canada. The new company, to be called Arcadium Lithium, will be the third-largest lithium producer in the world, behind Albemarle and SQM.
The deal has received all the required pre-closing regulatory approvals and is expected to close by January 4, 2023, subject to the approval of Allkem shareholders at a meeting on December 19. Allkem shareholders will own 56% of the new company, while Livent shareholders will own 44%. Livent CEO Paul Graves will lead the new company.
The merger will create significant synergies and savings for the new company, as well as enhance its operational flexibility and resilience. The new company will have a diversified portfolio of high-quality lithium products, serving a wide range of customers and applications. The new company will also have a strong pipeline of growth projects, aiming to increase its production capacity to 250,000 tonnes of lithium carbonate equivalent (LCE) by 2027.
The new company will also have a strong commitment to sustainability and responsible growth, as it seeks to help the world build a brighter tomorrow. The new company will leverage its combined expertise and experience to ensure the highest standards of environmental, social, and governance (ESG) performance.
The merger is a strategic move for both Livent and Allkem, as they seek to capitalize on the growing demand for lithium and position themselves as a leading player in the lithium chemicals market. The new company will have the scale, capabilities, and resources to meet the needs of its customers and stakeholders, and to deliver long-term value for its shareholders.
Source: Mining Weekly
