,American company Livent and the australian Allkem, leaders in the lithium industry in the world and? The only two projects that are in production operate in the country, announced a “final agreement” to advance in a merger “among equals” that will create a new company with a valuation of US$10.6 billion.
The only two projects that currently produce lithium carbonate in Argentina correspond to these two companies, which from now on will be merged.
It’s all about the projects Phoenix in the Salar de Hombre Muerto (Livent), Catamarca, operational since 1998, and Salar de Olaroz (Salts of Jujuy, Allkem)which it produces since 2018.
According to the latest export figures for the sector, the two companies were responsible in Argentina for sales of lithium carbonate abroad for US$ 696 million.
The projects that are being carried out in the Hombre Muerto and Olaroz salt flats are the only two that are producing in the country, although It is expected that another venture will join soon, Cauchari-Olaroz, which the Exar mining company is also developing in Jujuy.
Thanks to the production of the two companies that currently operate, Argentina is positioned in the global lithium market with an installed production capacity of 37.5 thousand tons of carbonate and an average annual production of 33 thousand tons, and it is considered the fourth global supplier behind Australia, Chile and China.
“A leading global producer of lithium chemicals is created, with combined pro forma 2022 revenue of approximately $1.9 billion and adjusted Ebitda of approximately $1.2 billion,” the companies said when announcing the agreement in a statement.
The companies highlighted that they will “combine their highly complementary range of assets, growth projects and operational skills in mining and processing under a vertically integrated system.”
The operation will “immediately improve the critical scale of the business and global capabilities, strengthening the ability to serve customers with a more resilient supply chain,” they said.
Source: Ambito
