Livent Expects Higher Lithium Sales Volumes, Pricing in 2023

Lithium miner Livent (NYSE:LTHM) saw its revenue nearly double last year on the back of higher lithium prices.

For 2022, Livent reported revenue of US$813.2 million and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of US$366.7 million, over five times higher than the prior year.

"We expect to generate higher profitability in 2023 as we build on this performance,” said CEO Paul Graves in a statement on Tuesday (February 14). “This is driven by further expected increases in average realized pricing across our lithium products, as well as higher sales volumes with the first phase of our Argentina expansion coming online during the year."

Last year, lithium prices climbed on the back of strong demand from the electric vehicle (EV) industry. Although the rally has taken a pause, so far this year prices have remained at high levels.

For 2023, the Philadelphia-based company projects revenue to be in the range of US$1,000 million to US$1,100 million, while adjusted EBITDA is expected to be in the range of US$510 million to US$580 million. According to Livent, this would represent growth of roughly 30 percent and 50 percent, respectively, at the midpoints versus the prior year.

Livent, which operates its lithium business in the Salar del Hombre Muerto in Argentina, also said it remains on track to deliver all previously announced capacity expansions.

The first 10,000 metric ton lithium carbonate expansion in Argentina is “substantially complete” and in the process of starting up, with commercial volumes expected in H2 2023. The company said it is also set to add the next 10,000 metric tons of lithium carbonate capacity in Argentina by the end of 2023, with first production from this second expansion expected in early 2024.

The company's lithium hydroxide capacity is also forecast to increase to 45,000 metric tons by the end of the year. Livent has kicked off construction at a 15,000 metric ton lithium hydroxide facility at a new location in the province of Zhejiang, China, with first commercial volumes expected in 2024.

Additionally, the company is qualifying products with customers at its new 5,000 metric ton lithium hydroxide line in Bessemer City, North Carolina, and will deliver commercial volumes in 2023.

In Quebec, Livent owns 50 percent of the Nemaska lithium asset, for which the company is expecting to publish a feasibility study during the first half of 2023. The project is forecast to have nameplate capacity of 34,000 metric tons of battery-grade lithium hydroxide and a mine life of over 30 years. Commercial sales are expected to begin in 2025.

Supported by favorable lithium market conditions, the company’s share price is up more than 32 percent year-on year. Other US, Canadian and Australian lithium stocks have also seen year-to-date gains.

As of 11:30 a.m. EST on Wednesday (February 15), shares of Livent were trading at US$26.14.

Don't forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.