Allkem and Livent announce definitive agreement to combine in an all-stock merger of equals valuing the combined company at US$10.6 billion (A$15.7 billion)¹

Key Highlights

• Creates a leading global lithium chemicals producer, with pro-forma CY'22 combined revenue of approximately US$1.9 billion² and adjusted EBITDA of approximately US$1.2 billion
• Immediately enhances business-critical scale and global capabilities from closing, strengthening the ability to serve customers with a more resilient supply chain
• Vertically integrated business model allows enhanced operational flexibility and potential for greater value capture across the value chain
• Geographically adjacent, high quality, low-cost asset portfolio in Argentina and Canada creates opportunities to both accelerate and de-risk the development of a strong pipeline of attractive growth projects expected to deliver production capacity of approximately 250ktpa LCE by CY'27E³
• Significant expected run-rate operating synergies of approximately US$125 million per annum (pre-tax) and one-time capital savings of approximately US$200 million, driven mainly by asset proximity and co-development in Argentina and Canada. Additional synergies expected beyond CY'27E
• Strong combined balance sheet and cash flow generation provide financial flexibility to deliver accelerated growth plans
• Enhanced value proposition for shareholders, customers, employees, and local communities, with an unwavering commitment to sustainability and responsible growth

Allkem (ASX:AKE) and Livent (NYSE:LTHM) today announced the signing of a definitive agreement ("Transaction Agreement") to combine the two companies to create a leading global lithium chemicals producer ("NewCo"), (the "Transaction"). The Transaction is expected to close by the end of calendar year 2023, and upon closing of the all-stock merger of equals, Allkem shareholders will own approximately 56% and Livent shareholders will own approximately 44% of NewCo⁴.

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