Arcadium Lithium plc (NYSE: ALTM) (ASX: LTM) announced on Friday the completion of its all-stock merger of equals between Allkem and Livent.
The new combined company has a team of over 2,600 employees and had approximately USD$1.9 billion in combined total revenue in 2022.
Global lithium chemicals producer dedicated to responsible lithium utilization for clean energy advancement. Arcadium Lithium started trading today on the New York Stock Exchange under the ticker ALTM for its ordinary shares. It also started trading on the ASX under the ticker LTM at 10:00am AEDT on January 5, 2024.
This move is facilitated by issuing CHESS Depository Instruments (CDIs) to Allkem shareholders for foreign exempt listing on the ASX.
CDIs (CHESS Depository Instruments) are a way for Australians to trade and hold shares of foreign companies listed on the ASX. They make it easier for Australian investors to access international investments while following local market rules. Allkem shareholders have received either a Arcadium Lithium CDI or one Arcadium Lithium share.
However, shareholders in certain ineligible jurisdictions will receive cash from the sale of Arcadium Lithium CDIs after closing. Livent shareholders have received 2.406 Arcadium Lithium NYSE listed ordinary shares for each Livent share they held.
Read more: Lithium South Development expands production goals, updates PEA on Hombre Muerto lithium project
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Arcadium is world’s third largest lithium producer
The new business combination between Allkem and Livent places Arcadium Lithium in third place by size and reach underneath U.S.-based Albemarle Corporation (NYSE: ALB) and Sociedad Química y Minera de Chile (SQM) (NYSE: SQM).
Arcadium also has operating resources in Argentina and Australia with assets in the United States, China, Japan and the United Kingdom.
“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,” said Paul Graves, CEO.
“We are a leader in every major lithium extraction process – from hard rock mining to conventional pond and DLE-based brine processing – and vertically integrated, from resource to chemical manufacturing, in strategic locations around the world.”
The company’s operation in Argentina spans four properties over two provinces. It operates the Salar Del Hombre Muerto and the Sal De Vida in the Catamarca Province. Additionally, it operates the Cauchari and Olaroz properties in the Jujuy province.
The Salar del Hombre Muerto is situated in northwest Argentina in the northeastern part of Catamarca Province. This shares a border with Salta Province, located approximately 1,300 kilometers northwest of Buenos Aires.
Minera del Altiplano S.A. (MdA), Livent’s Argentine operating subsidiary, has been producing lithium brine at the Salar del Hombre Muerto since 1997. It is currently implementing expansion plans for the site. MdA is responsible for owning and operating the site and its associated facilities.
One of the largest changes this acquisition implements is tightening the competition in Argentina.
The merger of Livent and Allkem has significantly intensified competition in the Argentine lithium market. This development has led to a focus on cost-efficiency and expanding market share.
Merger intensifies competition in Argentina
POSCO Holdings‘ (KRX: 005490) headquarters developed lithium extraction technology in 2010. It initiated a period of investigation and feasibility studies for production. Seven years later, the company manufactured a pilot plant in South Korea. The plant had a capacity of 2,500 tons per year of lithium. Afterwards, the company installed it in Argentina, bringing POSCO Argentina into existence.
Meanwhile, Lithium South Development Corporation (TSXV: LIS) (OTCQB: LISMF) (Frankfurt: OGPQ) focuses on its flagship lithium brine project in the Hombre Muerto North Lithium Project.
Lithium South has completed drilling on 75 per cent of the project area, which includes the Alba Sabrina, Natalia Maria, and Tramo claim blocks. They have also delineated a resource of 1.58 Mt Lithium Carbonate Equivalent (LCE), with 90 per cent of the resource falling into the measured category, the highest resource category.
Lithium South Development Corporation is a sponsor of Mugglehead news coverage
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