Allkem and Livent Announce Merger and Joint Venture in Lithium Mining

Allkem and Livent announced an exchange of shares and a joint effort in lithium mining. After the merger, they will occupy 7% of the market.

Australians Allkem and American Livent announced about the merger on May 10. The company’s total value, the statement said, is estimated at $10.6 billion.

The statement notes that the deal will be closed before the end of the year. Allkem will own approximately 56% of the shares, while Livent shareholders will own 44% respectively.

Livent works with General Motors, Tesla and BMW, while Allkem works with Toyota. The joint venture can absorb 7% of the global lithium market and take the company to 4th place. If the plan (250 thousand tons per year) for the development of deposits is fulfilled, then by 2027 they will enter the top three. The Australian company mines lithium in Argentina, Australia and Canada. Livent also has deposits in Argentina and Canada.

How notes “Kommersant”, the deal will allow American manufacturers of batteries for electric vehicles to reduce dependence on Chinese supplies of lithium. Now the American Albemarle, the Chilean Sociedad Quimica y Minera de Chile, the Chinese Ganfeng Lithium and Tianqi Lithium are leading the market.