Lithium checmicals producers Allkem of the US and Australia’s Livent announced a merger into a $10.6 billion entity.
They said they will combine their highly complementary range of assets, growth projects and operating skills within extraction and processing. They will be well positioned to capitalise on the expected growth in lithium demand for electric vehicles (EVs) and energy storage solutions.
The new vertically integrated business, to be called NewCo, will have scale and expertise to meet the rapidly growing demand for lithium chemical products, they said.
The company expects synergy savings, also due to the proximity of assets in Canada and Argentina.
Allkem shareholders will own approximately 56% of the new business, with the transaction expected to close by the end of 2023.
Livent is a global leader in lithium processing technologies producing a diverse range of lithium chemicals for energy storage and other specialty applications, the duo said.
Allkem brings complementary expertise in conventional brine-based lithium extraction, hard rock mining and lithium processing.
Livent’s president and chief executive officer, Paul Graves, said: “Together we can accelerate our growth plans and deliver more lithium, more reliably, and more quickly, than either of us can do alone.”
Graves will be CEO of the new company, and its primary listing will be on the New York Stock Exchange. Gilberto Antoniazzi will become the CFO.