Arcadium Lithium (ALTM) Investor Update summary

Strategic rationale and transaction overview

• Acquisition of Arcadium Lithium creates a world-leading, vertically integrated lithium business with a premier resource base, advanced technology, and strong customer relationships.

• The deal is valued at $6.7 billion in cash, or $5.85 per share, representing a 90% premium to the prior closing price, and is unanimously approved by both boards.

• Completion is targeted for mid-2025, subject to shareholder, court, and regulatory approvals, with Arcadium shareholders receiving immediate liquidity and certainty.

• The transaction will be funded from existing liquidity, with no change to current CapEx guidance or dividend policy, and Arcadium's capital requirements represent about 5% of group CapEx.

• The combined entity will focus on establishing lithium hubs in Argentina and Canada/Quebec, accelerating project delivery and growth.

Growth, capital allocation, and market outlook

• Lithium demand is expected to grow at over 10% CAGR to 2040, with a market deficit anticipated from the late 2020s and double-digit growth until 2040.

• The acquisition enables acceleration of Arcadium's growth pipeline, potentially bringing 50,000 tons of lithium online two years earlier than planned and targeting over 130% capacity growth through 2028.

• Vertically integrated operations include brine, hard-rock, and specialty lithium assets, with consolidated nameplate capacity projected to reach 295 kt LCE by 2028.

• Multi-generational resource base with 9Mt LCE reserves and 37Mt LCE resources, positioning the business as a global leader.

• The focus remains on low-cost, scalable brine and hard rock resources, with flexibility to adjust spending if market conditions change.

Technology, innovation, and customer relationships

• Significant synergies are expected from combining DLE technology, LIOVIX®, and project delivery expertise, enabling rapid expansion and improved sustainability.

• Multi-year commercial relationships established with global automotive and battery leaders, including Tesla, Ford, Panasonic, and BMW.

• Arcadium's diverse product range and robust supply network position the combined business as a partner of choice for major customers.

• Operational expertise in both conventional and DLE lithium extraction will de-risk project execution and ramp-up.

• The integration will not involve major workforce reductions; instead, it aims to retain and motivate talent to accelerate development.