Former Woodside Chief Executive Officer Peter Coleman has been named as the head of NewCo, a global lithium chemicals producer that will result from the merger of Allkem and Livent.
The two companies have agreed to merge, with the combined entity being valued at $15.7 billion AUD. Allkem stated that the vertically integrated business model would improve the operational flexibility of NewCo and increase global capabilities to strengthen customer service across a more resilient supply chain.
Livent, which has nearly eight decades of experience producing lithium chemicals for energy storage and other specialised uses, is considered a world leader in lithium processing technologies. Meanwhile, Allkem brings a wealth of expertise in lithium extraction through conventional brine-based methods, hard rock mining, and lithium processing, complementing Livent’s strengths.
Livent President and CEO Paul Graves expressed his excitement for the two companies combining forces to lead the transition to EVs and cleaner energy. He added that the transaction would capitalise on their highly complementary business models and collective strengths, including their best-in-class technologies, assets, and people, to be a leading force in the industry driving growth in EV and energy storage applications. The combination of the two companies is expected to be “transformational” for both parties, according to Allkem CEO Martín Pérez de Solay.
The combined company aims to become the third-biggest lithium producer in the world by the end of 2027, with production expected to hit approximately 250,000 tonnes. The transaction will be finalised at the end of 2023, with Allkem shareholders holding 56 per cent and Livent shareholders possessing roughly 44 per cent of NewCo.
Following the announcement, Allkem shares rose 18.1 per cent and were trading at $15.25 at 2:45 pm AEST. The merger is set to significantly impact the global lithium chemicals industry and contribute to the ongoing shift towards a cleaner and more sustainable future.