Arcadium Lithium, one of the world's leading lithium producers, has unveiled a strategic plan that promises significant growth in the coming years, with Argentina positioned as a key pillar. The company expects to double its sales volumes by 2028 and achieve an adjusted EBITDA of US$1.3 billion, driven by strong global demand for lithium. Paul Graves, the company’s President and CEO, highlighted that the combination of a vertically integrated operational network and a disciplined commercial strategy will maximize the value of each unit of lithium delivered to its customers.
By Panorama Minero
At the heart of this plan are the expansion projects in Argentina, particularly at the Fénix and Olaroz assets, which are already operational and do not require additional capital investments. Arcadium Lithium expects a 25% increase in combined lithium carbonate and hydroxide volumes for 2024 and 2025, thanks to these developments.
Arcadium's expansion is structured in two phases. The first phase includes four expansion projects in Argentina, which will be gradually completed by 2028, effectively doubling the company's current sales volumes. These projects, already at various stages of development, "reflect Arcadium's vision of establishing Argentina as a key player in the global lithium market, leveraging its abundance of high-quality, low-cost resources," the company stated.
Arcadium's growth strategy also relies on multi-year commercial agreements with its clients, ensuring pricing and margin visibility even in a cyclical market environment. According to the company, this stability enables long-term investment planning to meet the growing demand for lithium, largely driven by the electric vehicle boom and the transition to clean energy.
In terms of operational efficiency, Arcadium Lithium's merger, completed in January 2024, has already generated significant savings for the company, as reported in its latest investor update. The company has exceeded initial expectations, with cost reductions expected to reach up to US$80 million by 2024. Additionally, Arcadium expects to achieve its US$125 million savings target by the end of 2025, two years ahead of schedule, thanks to organizational optimization and supply chain synergies.
Financially, Arcadium announced that it maintains a solid position with a projected net leverage ratio of no more than 2.1 times, providing flexibility to adapt to market fluctuations and explore both internal and external financing options. "This strong financial foundation supports the company’s projected growth and allows for investment in new developments without compromising stability".
Arcadium Lithium has also signed a Memorandum of Understanding (MoU) with Toyota Tsusho Corporation, one of its key strategic partners, to optimize its operational network and increase battery-grade lithium carbonate production in Argentina. This agreement will enhance Arcadium’s supply capabilities and positively impact its financial results starting in 2026.
