2023-05-15 19:30:00 ET
Pure-play lithium companies Livent (NYSE: LTHM) , based in the United States, and Allkem (OTC: OROCF) , headquartered in Australia, announced last Wednesday that they plan to merge to create a company that they forecast will have the world's third-largest lithium production capacity by 2027. The all-stock deal is expected to close by the end of 2023.
Investors liked the news, with shares of Allkem up 19.7% and those of Livent 5.9% higher in the four trading days following the announcement, a period in which the S&P 500 index edged down 0.04%.
Merger and acquisition activity has been heating up in the lithium space. Companies are keen to ramp up their production to meet the soaring demand for the compounds that are used to make lithium-ion batteries for electric vehicles (EVs).
For further details see:
Livent-Allkem Merger Will Create a Lithium Giant: What Investors Should Know