Arcadium lithium leads Argentina’s lithium market. It shaped from Livent and Allkem merging.

Now, it slows its enlargement as a consequence of low market costs. This impacts initiatives in northern Argentina.

Paul Graves, CEO, plans to chop spodumene manufacturing. This mineral comes from the Mt. Cattlin mine in Australia.

The purpose is to deal with Argentina and Quebec initiatives. Even so, the corporate’s Catamarca and Jujuy ventures will see funding and effectivity changes.

Graves shared with traders that 2024 will see $225 to $325 million in development capital for Argentina.

That is lower than wanted for the Fénix venture’s Part 1B enlargement. It aimed to begin in late 2024, producing lithium carbonate. It may delay enlargement by six to 9 months.

Arcadium lithium has a powerful presence in Argentina. It owns two of the three lithium initiatives there.

The Fénix and Olaroz initiatives are increasing. It additionally owns the Sal de Vida and Cauchari initiatives. Each are close to the primary two and at completely different building levels.

Within the final quarter of 2023, revenues fell to $181.8 million from $219.4 million. For 2024, the agency expects a 40% manufacturing enhance.

It forecasts revenues of $1.25 billion, with lithium at $15 per kilogram. If lithium hits $25 per kilogram, revenues may attain $1.9 billion.

Navigating Financial Challenges

Graves famous the financial problem of increasing at present costs. He believes costs will hit a backside.

This might result in a future provide scarcity. As of 2022, this will trigger lithium costs to rise rapidly.

Nevertheless, predicting the timing and scale of this rise is tough as a consequence of international provide chain complexities.

Spot costs for lithium peaked at $80,000 per ton in late 2022. They dropped to $20,000 per ton by December.

The corporate expects to spend $450 to $625 million on development in 2024. Upkeep will price a further $100 to $125 million.

It goals to save lots of $60 to $80 million by means of merger synergies. This reveals its technique to optimize sources in difficult instances.