【Shenyang Adds 20 Million Yuan to Auto Consumption Subsidy Fund】On March 24, SMM learned that the Shenyang Municipal Bureau of Commerce launched the 2025 Spring Auto Consumption Subsidy Campaign in Shenyang from March 10 to March 31. By March 15, the initial subsidy fund of 30 million yuan had been fully applied for. In order to further enliven the auto market, encourage the consumption of new energy vehicles, and fully unleash the subsidy's effectiveness in stabilizing growth, promoting transformation, and benefiting people's livelihoods, the Shenyang Municipal People's Government has decided to add another 20 million yuan to the subsidy fund. The extended auto consumption subsidy campaign will continue from March 25 (inclusive) to March 31 (inclusive) in 2025.

The policy drive for the transition of the world in cleaner, renewable energy has really triggered an unbeatable surge in the demand for such metals as cobalt, lithium, and nickel. They are very important development factors in electric vehicle economies, batteries, energy-storage systems, and renewable energy technology in general. Indeed, technological development is creating demand for such metals on one hand, while there are major government policies that drive the demand much deeper: from tax breaks and subsidies given to green technologies down to rules covering imports and exports, numerous policy measures reach and set prices of such critical metals.

Arcadium Lithium's CEO, Paul Graves, spoke at a recent conference event, shedding light on the recent merger of Livent and Allkem and its strategic impacts.

[2023Q4 South American salt lake giants saw a decrease in revenue] In 23Q4, SQM, Albemarle, and Livent achieved revenues of $1.31 billion, $2.36 billion, and $0.18 billion, with year-on-year decreases of -58%, -10%, and -17%, and quarter-on-quarter decreases of -29%, +2%, and -14%, respectively. In 23Q4, SQM's net profit was $2.0 billion, a year-on-year decrease of -82% and a quarter-on-quarter decrease of -58%. Albemarle and Livent's adjusted EBITDA in 23Q4 were -$0.32 billion and $0.9 billion, with year-on-year decreases of -125% and -15%, and quarter-on-quarter decreases of -170% and -24%, respectively.

Multiple lithium producers in Australia have operational or strategic updates this week, adding to their recent earnings calls, many of which stress the importance of cautious plannings, near-term flexibilities, and long-term optimism in this lithium cycle downturn.

Mt Cattlin, one of the spodumene concentrate producing assets owned by Arcadium Lithium in Western Australia, has been reported to face closure since late February.

The merger of lithium producers Allkem and Livent has been completed. The entire stock merger transaction between Allkem and Livent was completed on January 4th. The new merged company, Arcadium Lithium, is one of the world's largest integrated producers of lithium chemicals, with approximately $1.9 billion in combined revenue and a global team of over 2600 employees in 2022, along with top-tier lithium resources and production bases.

On December 19, the $10.6 billion Allkem-Livent merger has been approved by shareholders on both sides, creating a new company Arcadium Lithium, poised to be one of the world’s largest lithium producers after Albemarle and SQM.

Although prices have fallen recently due to concerns about the slowdown in electric vehicle purchases, most overseas lithium manufacturers, including Livent, have expressed continued optimism about long-term demand.

In conference calls with investors and analysts in recent days, lithium producers said they viewed the market volatility as short-term, adding that they expected electrification momentum to continue to grow.