Can you give an overview of Arcadium Lithium and the company’s presence in Canada?

Arcadium Lithium was created in January 2024, a merger between Livent and Allkem. The companies were very different, but both had rich histories in lithium. The strategic rationale was significant. They have complementary asset bases, for instance Livent’s Salar Del Hombre Muerto project and Allkem’s Sal de Vida project in Argentina. These are adjacent to each other and will benefit from many synergies as we develop and grow the resources. In Québec, the Whabouchi mine, Galaxy mine, and the downstream development in Bécancour provide ample opportunities. Since the announcement of the merger in May 2023, the lithium market has changed and prices have fallen, but the rationale behind the merger remains robust, and in the current challenging market conditions, we are more resilient as an integrated company. What are the catalysts ahead for the Galaxy project, and how will this operation feed into the North American lithium market?

Arcadium has positioned itself as a fully integrated chemicals company with the idea of not only producing upstream raw materials but of owning and controlling the resources and technology in the downstream processing of battery-grade chemicals. Our ultimate goal with the Galaxy project is not to produce spodumene, but to produce lithium hydroxide which can contribute to the development of a North American battery supply chain. Significant governmental support and supply chain investments in battery power give us confidence in the future demand for lithium hydroxide in North America. Arcadium is, potentially, planning to build a downstream facility either in Bécancour (Québec), elsewhere in Canada, or even in the US, depending on where the end customers are and the financial incentives from provincial, state, and federal governments. Investing in the current low-price environment is challenging, and so partnerships, whether with customers, industry, or government, are important.

With significant attention on, and support for, building battery cells and cathode capacity, the downstream processing of critical minerals has been somewhat neglected. The risk is we will have battery and cathode plants, but they will be starved of raw materials and forced to rely on Chinese suppliers. Bringing mines and converter facilities online takes significantly longer than building battery factories. Increased focus and support should now be upstream so that we have materials to feed the supply chain downstream. What is Québec's potential to be a leading integrated lithium player, and for industry to make the circular economy a reality?

Québec is well positioned to be a leading lithium producer, and the region has avoided becoming a bulk commodity producer supplying China. Québec has attracted downstream investment and made the province a place where companies want to set up battery and cathode factories. In building this supply chain ecosystem, it allows critical minerals producers to be part of an integrated battery supply chain. Québec is geographically well positioned to supply the US and European markets. Its green energy grid is also a major drawing card for end customers and investors. The challenge is how much of that green power is available to allow new and existing projects to carry on growing. How are conversations with OEMs looking to secure future supply unfolding?

Arcadium has exclusive marketing rights on Nemaska Lithium’s products and secured a long-term agreement with Ford in May 2023 for approximately half of the refinery’s available contracted capacity. It is now looking to secure a second customer for the remainder. Despite current prices, discussions with OEMs are encouraging, and our products are attracting significant interest as they are, unusually, IRA-compliant material and sustainably produced. Even though lithium prices and valuations of companies are low, engagements from OEMs remain high, and there is a strong business case for continuing to build more lithium hydroxide capacity in North America, which the Galaxy mine will feed into. What are Arcadium’s key priorities for 2024 and beyond?

Arcadium will continue to look for commitments and certainty from downstream customers which will give us the confidence to continue investing, and we will continue to forge strategic partnerships with customers and governments to support the development of the Galaxy project. Arcadium is also taking a long term view of where the lithium battery industry is heading. And we want to make sure that we have the proper technology to respond to our customers’ needs.