Lithium chemicals companies Allkem and Livent have closed their previously announced all-stock merger of equals to form Arcadium Lithium, a new lithium chemicals producer valued at $10.6bn.

Last month, the deal received all necessary shareholder approvals for its closing. The transaction was announced in May 2023.

In Arcadium Lithium the shareholders of Allkem and Livent are expected to own stakes of around 56% and 44%, respectively.

Based in the US, Livent produces a wide range of lithium chemicals using advanced lithium processing technologies for applications like energy storage and specialised uses. On the other hand, Allkem, headquartered in Australia, has expertise in conventional brine-based lithium extraction, hard rock mining, and lithium processing.

The enlarged company, Arcadium Lithium, with a global workforce of over 2,600 employees, achieved approximately $1.9bn in combined total revenue in 2022. It is said to be one of the world’s largest integrated producers of lithium chemicals.

The company will have a substantial portfolio of cost-effective assets spread across crucial geographies, products, and customer bases.

Arcadium Lithium CEO Paul Graves said: “As one of the leading global producers of lithium chemicals, Arcadium Lithium has the resources, scale and expertise to meet the growing needs of our rapidly changing industry.

“We are a leader in every major lithium extraction process – from hard rock mining to conventional pond and DLE-based brine processing – and vertically integrated, from resource to chemical manufacturing, in strategic locations around the world. This will open doors to new opportunities and strengthen our ability to deliver value to our customers, investors, employees and communities.”

Arcadium Lithium said that its ordinary shares have started trading on the New York Stock Exchange (NYSE) under the ticker “ALTM”. The company will also maintain a foreign exempt listing on the Australian Securities Exchange (ASX) via the issuance of chess depositary interests (CDIs) to Allkem shareholders.