Australian Allkem and American Livent have gone from rivalry to marriage. The truth is that these two major global players in the lithium industry have decided to merge to create a company that it will be the number one lithium in the worldThis union in equal parts has been valued at $10.6 billion. Both had revenues of nearly $2 billion in 2022 and pre-tax profits of $1.2 billion. clarion interviewed Gilberto Antoniazzi, Chief Financial Officer of Livent, who lives by plane and has his offices in Brazil.
Why did you decide to merge?
-To enhance the enterprise scale and global capabilities. The vertically integrated design allows for greater operational flexibility.
-They are the only companies that already produce lithium in Argentina…
-We are in Catamarca and we plan to invest 1,000 million dollars between now and 2025. And Allkem is in Jujuy. And we see that Argentina has a future as a key player in the lithium market. Between the two companies we have a portfolio of high quality, low cost assets in Argentina and Canada. Operating synergies are expected with capital savings of approximately US$200 million, driven by asset proximity and joint development in Argentina and Canada. Livent is a world leader in lithium processing technologies. And Allkem brings expertise in conventional brine-based lithium extraction and lithium processing.
-The conditions for Argentina to play a central role?
-Argentina is Argentina, but we are where the resources are and there is lithium in this region, in Australia and in China where it is of poor quality. Of course, the legal framework is very important.
-Does Chile’s intention to nationalize lithium concern you?
-Chile is a mining country with a culture where the government has a strong influence on decisions as it does with copper.
– Is lithium still a business now that its price has dropped?
-Lithium will grow in geometric proportion. This year, 400,000 tons of lithium carbonate are expected, which are projected to 1.5 million in 2025. And this is thanks to the boost from the automotive industry: 40% of vehicles in China are already electric. And it is growing in the United States and the European Union. The price has dropped but in the last two weeks it has already recovered because the technology chosen is the lithium battery. But, moreover, lithium is the key to the current technological revolution; cell phone and tablet batteries are made from it. As the lightest metal in the periodic table, it is used in light alloys for aeronautics such as developing airplanes, ships and satellites. It is in complex polymers, the soles of our shoes, lubricating greases, such as those used for bicycle chains, asphalt, agrochemicals, ceramics, enamels, glass and medicines.
-What does the 1,000 million dollar investment plan consist of?
-We have been working on the Fénix project for more than 25 years, in the Salar del Hombre Muerto, Catamarca. Livent has an exclusive high-tech process to obtain products with a purity greater than 99%. And we have evolved towards technological mining. From machining centers exported to different countries.
Source: Clarin
