A $US10.6 billion global lithium force led by Peter Coleman will be formed by the merger of Allkem and Livent, which will be listed on the New York Stock Exchange.
Shareholders of Allkem will hold 56-44 control over the expanded business in exchange for one share of the new company for every Allkem share they own.
With inclusion in the S&P/ASX 200, the combined company will have a presence on the ASX through CHESS depositary interests.
Both businesses extract lithium from underground “brines” in Argentina’s high deserts; Allkem’s flagship Olaroz plant is located roughly 200 kilometers north of Livent’s Salar del Hombre Muerto facility.
Combining these assets will increase efficiency, and Allkem also owns an unfinished lithium brines project at Sal de Vida in the same region of Argentina.
The transaction takes place nearly exactly two years after Brisbane-based Orocobre and Perth-based Galaxy Resources, two ASX-listed firms, merged to form Allkem.
Western Australia’s Mt Cattlin hard rock lithium mine is run by Allkem, however, it only makes up a small portion of the company’s overall operations.
With Allkem also owning an undeveloped spodumene deposit at James Bay in Canada, the combined business will have a strong emphasis on American markets.
Its investor presentation states that the company wants to be known as a lithium large cap.
