Allkem Limited has signed a definitive agreement with U.S.-based lithium technology company Livent Corp. to combine the businesses and create a global lithium chemicals producer.
The transaction is expected to close by the end of the year, and upon the closing of the all-stock merger of equals, Allkem shareholders will own approximately 56 per cent and Livent shareholders will own approximately 44 per cent of NewCo.
The new company will have a significant footprint of low-cost assets diversified across key geographies, products and customers, and support the creation of new opportunities to co-develop and de-risk future expansion projects and operations.
Allkem added that given the proximity of certain assets in Argentina and Canada, significant cost synergies and capital expenditure savings, in addition to other anticipated commercial synergies, are expected to be realized following its merger with Livent.
Under the new business, Allkem will provide its expertise in conventional brine-based lithium extraction, hard rock mining and lithium processing, while Livent will offer its technical and commercial capabilities to create a company that can capitalize on the expected growth in lithium demand from electric vehicles and energy storage solutions.
Strategic benefits of the merger include the creation of a global lithium chemicals producer that can meet growing customer demands and the development of a highly complementary and vertically integrated business model that can improve operational flexibility and reliability.
Livent President and CEO Paul Graves said that as a combined company, the business will have the enhanced scale, product range, geographic coverage and execution capabilities needed to meet the growing demand for lithium chemicals.
“I am excited for what lies ahead as Livent and Allkem combine forces to help power the transition to EVs, cleaner energy and a more sustainable future,” he added.
Meanwhile, Allkem CEO Martin Perez de Solay said NewCo will improve the delivery of high-quality, value-added products to customers and unlock new material synergies.
