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Arcadium Lithium plc (ALTM-N) has acquired the lithium metals business of Toronto-based Li-Metal Corp. (LIM-CN) for $11 million US, unveiling the buyer following a non-binding letter of intent announced by Li-Metal in June.
The all-cash acquisition will include the intellectual property and assets for lithium metal production, and a pilot production facility in Ontario. Both companies entered into a supply agreement where Arcadium will provide lithium metal to Li-Metal in a long-term offtake agreement.
Li-Metal said it would sell its lithium metals business to improve its finances and generate the capital for the lithium metal anode business.
"The sale of our lithium metal technology to Arcadium, North America's largest established lithium metal producer, represents a pivotal milestone in Li-Metal's journey. This transaction validates the exceptional work of our dedicated team in advancing lithium metal production through our patented carbonate-to-metal process,” Keshav Kochhar, Li-Metal’s interim CEO, said in a release.
Kochhar said the proceeds from the sale will go to development of its anodes for batteries.
Philadelphia-based Arcadium is a lithium chemicals producer formed in January as a merger between Livent and Allkem. The company emphasizes the sustainability applications of lithium, such as being used to make batteries and advanced alloys and polymers.
"We are excited to welcome the team to Arcadium Lithium as we look to lead the way in developing cutting-edge lithium carbonate to lithium metal production technology,” Paul Graves, the president and CEO of Arcadium, said in a release.
About Li-Metal and Arcadium
Li-Metal is a lithium metal anode and battery technology developer. It says it is the first company in the world to produce lithium metal from lithium carbonate, which eliminates chlorine gas emissions.
In Markham, Ont., it has a pilot facility that can produce four to five tonnes of lithium alloy ingots per year.
A concept study from Li-Metal revealed plans for a lithium metal facility that would be the first commercial carbonate-to-metal production site in the world. Bringing lithium production closer to home and away from China is a major goal of the facility, as well as having a greener process with few greenhouse gas emissions.
The company has shuffled its leadership, with then-CEO Srini Godavarthy resigning in July, with no reason provided.
Li-Metal’s co-founder and CTO Maciej Jastrzebski has entered into a consulting agreement with Arcadium to “facilitate the transfer of technology and integrate the team.”
Arcadium will look to fortify its sustainable lithium production with the acquisition, it said in the release.
"The ability to produce lithium metal from lithium carbonate will give us additional flexibility to utilize our vertically integrated network of assets while reducing the need for third-party lithium metal,” Graves said.
“This will further enhance the competitiveness of our butyllithium and lithium specialty chemicals business and help us create the scale needed to meet the growing demand for next generation battery materials developed from lithium metal."
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