Livent Positioned for Profit Growth From Low-Cost Lithium Expansion and Value Accretive Allkem Deal

Spun out of FMC in late 2018, Livent is a pure-play lithium producer. The company's lithium carbonate production in Argentina is among the world's lowest-cost lithium sources. Livent is planning to merge with another pure-play lithium producer, Allkem, in an all-stock transaction where the two companies will merge into a new entity. In this deal, Livent shareholders will receive 44% of shares in the new company, while Allkem shareholders will receive the remaining 56%. We think the deal will close by the end of 2023. The new company should have a top-four lithium production capacity globally.