Allkem

History

2023: Livent and Allkem merge into $10.6 billion company

On May 10, 2023, the Australian company Allkem and the American corporation Livent announced the signing of a final merger agreement. Some of the world's largest lithium producers will form a structure with a total market value of approximately $10.6 billion.

The combined company, as noted in the official statement, will have a significant amount of assets diversified by key regions, product families and potential customers. As part of the deal, the parties will combine their resources in the field of mining and processing of minerals. As a result, an effective vertically integrated business model will be created to meet the rapidly growing demand for lithium compounds.

Thanks to Livent's technical and commercial capabilities and close relationships with customers, as well as Allkem's large and diverse resource base and significant growth potential, the combined company will have good prospects in the face of increased demand for lithium from manufacturers of batteries for electric vehicles and energy storage systems, the joint statement said.

The deal is scheduled to be completed by the end of calendar year 2023 after obtaining the necessary regulatory approvals. Once merged, Allkem shareholders will own approximately 56% in the new company, while Livent shareholders will receive the remaining 44%. The structure will include several factories for the production of lithium compounds: they will be able to supply products around the world. The merger will provide an opportunity to optimize costs and achieve cost savings thanks to geographically related assets in Argentina and North America. The new company will become one of the world's leading suppliers of lithium for batteries.^[1]

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