Arcadium Lithium (ALTM) Investor Day 2024 summary

Strategic Vision and Business Model

• Formed by the January 2024 merger of Allkem and Livent, creating a vertically integrated, global lithium producer with expertise across all extraction and processing methods and a diversified asset base.

• Focuses on innovation, sustainability, and customer partnerships, investing in next-generation technologies like ILiAD DLE and Liovix for solid-state batteries, and maintaining high standards for responsible production.

• Commercial strategy centers on long-term, multi-product contracts with price floors and volume commitments, ensuring financial predictability and resilience through market cycles.

• Maintains a full suite of sustainable lithium products, serving leading customers in energy storage, EV, and industrial markets, with a strong presence in Asia-Pacific and plans for greater geographic diversification.

• Emphasizes a flexible, vertically integrated supply chain to maximize profit per unit and value across the supply chain.

Resource Base and Expansion Plans

• Operates and develops large, low-cost brine resources in Argentina (Fenix, Olaroz, Sal de Vida, Cauchari) and hard rock assets in Quebec, Canada (Nemaska, Galaxy), with over 100 years of resource life at key sites.

• Wave One expansion projects will more than double production capacity to 170,000 tons LCE by 2028, with Wave Two projects adding at least 125,000 tons, supporting a decade or more of volume growth.

• Integrated Quebec hydroxide plant (Bécancour) to produce at under $10/kg, with Whabouchi mine supplying feedstock; first commercial production expected in 2027.

• Major capex allocated to Nemaska Lithium, Galaxy, Fénix 1B, and Sal de Vida, with $650M planned for 2025 and $440M for 2026; minority investor process underway for Galaxy.

• Mt Cattlin production reduced and transitioning to care & maintenance by mid-2025 to improve cash flow by $75M–$100M over 2024–2025.

Financial Outlook and Capital Allocation

• Targets $1.3B in adjusted EBITDA by 2028, up from $525M in 2025, with margins rising from 38% to near 48% and strong free cash flow generation post-2026.

• Achieved $80M in run-rate cost savings in 2024, targeting $120M in 2025, well ahead of merger targets, through centralization, procurement, and workforce reductions.

• CapEx for Wave One expansions totals $1.6B, with flexibility to adjust timing and scope based on market conditions and customer demand.

• Funding strategy includes internal cash flow, customer prepayments, government funding (e.g., Canadian Strategic Innovation Fund), and new long-term debt, avoiding shareholder dilution.

• Peak net leverage of 2.1x expected in 2026, declining rapidly thereafter, with financial flexibility to adapt to market scenarios and maintain a healthy balance sheet.