Australian lithium miner Allkem Ltd. (AKE.AX) announced a $10.6 billion deal to purchase U.S. chemical manufacturer Livent Corp. (LTHM.N).
Livent will hold 44% of the new company and Allkem 56%.
Livent shareholders will receive 2.406 shares in the new firm for each Livent share, while Allkem stockholders will receive one share of a new public holding company for each Allkem share.
As manufacturers want lithium for electric car batteries, Allkem shares have increased 15% this year. Demand for the metal is predicted to increase five-fold by 2030.
U.S. commodities companies have been trying to acquire Australian lithium mining. However, In March, Albemarle Corp.’s A$5.50 billion purchase offer was rejected by Liontown Resources (LTR.AX).
Galaxy Resources and Orocobre’s 2021 scrip merger created Allkem with a market valuation of A$8.23 billion ($5.58 billion).
The ASX-listed business drills at Olaroz and Mt Cattlin facilities in Argentina and Australia, respectively, while Livent’s Hombre Mureto lithium project is 200 kilometers from Olaroz.
Livent, situated in Philadelphia, sells battery metal to General Motors Co (GM.N), Tesla Inc (TSLA.O), and BMW (BMWG.DE).
The new firm’s chairman will be Allkem’s Peter Coleman, and its CEO will be Livent’s, Paul Graves.
