Arcadium Lithium has completed its first quarter as a combined company following its mega-merger between Allkem and Livent.
The company achieved an average realised pricing of over $20,000 per tonne for its combined hydroxide and carbonate volumes in the first quarter, contributing to a revenue of $261 million.
Arcadium Lithium president and chief executive officer Paul Graves said the company has taken steps to ensure the transition will deliver on its potential.
“Our multi-year customer relationships and wide range of high-quality lithium products allow us to reduce the overall volatility of our earnings while maximising the value per unit of lithium sold,” he said.
“We see encouraging signs in the lithium market and underlying demand fundamentals remain very strong.
“Prices have increased from the cycle bottom and appear to have stabilised at levels that are notably higher than what we saw in the last downturn.”
Arcadium’s combined volumes in the first quarter were down versus the prior quarter, driven primarily by a decline in spodumene sales due to lower production at the company’s Mount Cattlin lithium project in Western Australia.
But Arcadium said prices were slightly higher across most lithium products versus the prior quarter due to an improvement in lithium market conditions.
“The company is bringing into production additional capacity in 2024 according to plan while also investing in the next series of expansions,” Graves said.
“By the end of 2026, we expect to increase total capacity to 170,000 LCEs (lithium carbonate equivalent), or over four times production levels in 2023. This pathway to significant near-term volume growth puts our company in a unique position within our industry.
“There is no doubt that post-merger, we are stronger and more resilient, and we remain confident investing in our highly attractive assets throughout market cycles.”