Arcadium Lithium: A new giant rises

After shareholders gave the Allkem–Livent merger the nod in December, Arcadium Lithium has officially been created, becoming the third largest lithium producer in the world.

Ordinary Arcadium shares have begun trading on the New York Stock Exchange, while the company also holds a foreign exempt listing on the ASX through the issue of Chess Depositary Interests (CDIs) to Allkem shareholders. Arcadium has commenced trading on the ASX under the ticker “LTM”.

The creation of Arcadium Lithium combines Allkem’s multinational upstream lithium capabilities, including hard-rock and lithium brine assets in Australia, Argentina and Canada, with Livent’s downstream processing offerings, including lithium chemical facilities in the US, Argentina and China.

“As one of the leading global producers of lithium chemicals, Arcadium Lithium has the resources, scale and expertise to meet the growing needs of our rapidly changing industry,” former Livent and new Arcadium chief executive officer Paul Graves said.

“We are a leader in every major lithium extraction process – from hard rock mining to conventional pond and DLE (direct lithium extraction)-based brine processing – and vertically integrated, from resource to chemical manufacturing, in strategic locations around the world.

“This will open doors to new opportunities and strengthen our ability to deliver value to our customers, investors, employees and communities.”

Former Allkem non-executive chair and new Arcadium chair Peter Coleman said the establishment of Arcadium Lithium would offer the renewable energy industry the opportunity to work with a new vertically integrated partner.

“If you think about a sector that’s trying to grow and is going to be such a large part of the energy transition, and the single biggest player that’s traded in the western world only has a market capitalisation of $14 billion (Albemarle), you have to think there’s a big opportunity there at some point,” he said at a Melbourne Mining Club luncheon in December.

“We thought the Livent merger integrates the company and allows us to go through the value stream up to the point of the cathode … but also get access to a differentiation in the product streams – so different products coming out the back end.”