Lithium company Livent is participating in a consortium that will acquire the business and certain assets of Nemaska Lithium Inc. (New Nemaska) located in Québec, Canada. Livent has agreed to invest in New Nemaska via a joint venture with The Pallinghurst Group.
Both companies will equally own Québec Lithium Partners (QLP), which will have a 50% equity ownership in New Nemaska. The remaining 50% of New Nemaska will be owned by Investissement Québec. Livent and Pallinghurst will have responsibilities for the development and operations of the project.
New Nemaska is one of the most attractive lithium projects in the world and is ideally positioned to meet the growing demand for a reliable high-grade supply of lithium chemicals in North America and Europe. It will also have a favorable sustainability profile due to its location in North America and abundant access to renewable hydroelectric power, among other factors.
Livent has also extended its multi-year lithium hydroxide supply agreement with Tesla through 2021, with a commitment for higher volumes than in 2020. Livent continues to discuss the framework for a long-term supply partnership with Tesla beyond 2021.
Livent also announced a commitment to reduce carbon intensity significantly across its operations, resulting in overall carbon neutrality by 2040. This is being driven in part by the increasing focus of customers and other stakeholders on the environmental and social impact of the entire electric vehicle supply chain. Additional sustainability goals and initiatives will be shared by Livent before year end.
Livent anticipates a sequential increase in volumes in the fourth quarter of this year. Despite a disruption to supply chains globally due to COVID-19, electric vehicle sales are now tracking higher year-over-year, and Livent continues to expect significant electric vehicle demand growth. However, sustained lithium pricing weakness has forced many developers and producers to defer or cancel new projects and expansions, creating a potential shortage of battery-qualified lithium materials in the coming years.