US-based Livent and Australian company Allkem have signed a merging transaction agreement to form the fifth largest lithium chemicals company in the world, with a combined valuation of USD10.6 billion. Both companies will naturally share infrastructure and resource pilots that will be consolidated and streamlined to ensure capex savings and efficiency gains. Specifically, the joint press release states annual opex savings of USD125 million pre-tax, as well as achieving a one-time capex saving of USD200 million through the merger. Allkem operates predominantly out of Argentina and Australia, with the former location in Olaroz being situated relatively near to Livent’s Hombre Muerto lithium brine operation. Both companies also have assts in close proximity in Canada which will also be optimised as part of the merger.