Australia-based Allkem and US-based Livent announced a definitive agreement to combine in an all-stock merger of equals valuing the combined company at US$10.6 billion (A$15.7 billion). The merger will create a leading global lithium chemicals producer that will target large automotive companies and look to accelerate supply growth in Canada and Argentina.

Source: Livent

The combined company will have a significant footprint of low-cost assets diversified across key geographies, products, and customers and will have pro-forma CY’22 combined revenue of approximately US$1.9 billion and adjusted EBITDA of approximately US$1.2 billion.

The transaction is expected to close by the end of calendar year 2023, and upon closing of the all-stock merger of equals, Allkem shareholders will own approximately 56% and Livent shareholders will own approximately 44% of the new company.

Livent has nearly eight decades of experience producing a diverse range of lithium chemicals for energy storage and other specialty applications. Allkem brings complementary expertise in conventional brine-based lithium extraction, hard rock mining, and lithium processing. With Livent’s technical and commercial capabilities and its deep customer relationships, and Allkem’s large and diverse resource base and significant growth pipeline, the new company will be well-positioned to capitalize on the expected growth in lithium demand from electric vehicles and energy storage solutions.