Allkem powers to record $818m profit ahead of merger vote

The news: Lithium miner Allkem has posted a record profit of USD524.6 million ($817.8 million), up 57% on FY22.

The numbers: Allkem boosted total revenue by 62% to USD$1.2 billion and produced a record 16,703 tonnes of lithium cobalt oxide at its Argentinian Olaroz project, which is part-owned by Toyota Tsusho. Allkem's Mt Cattlin project in WA produced 130,984 dry metric tonnes of spodumene concentrate and lifted revenue 36% to a record USD615.6 million, as average spodumene prices increased by a multiple of 2.2 year on year.

The context: Later this year, Allkem shareholders will vote on a merger with US-based Livent to create the world's third-largest lithium miner. Livent is producing lithium in Canada and Argentina, has refineries in the US and China, and has supply agreements with Tesla, BMW and General Motors. The merged entity, NewCo, would be primarily listed on the New York Stock Exchange, with ASX investors owning their new shares through a CHESS Depository Interest (CDI).