Deal leaves Li-Metal to focus on anode production, while Arcadium, which owns lithium projects in Quebec, will leverage the technology to expand its lithium processing operations

Canadian lithium metal anode developer Li-Metal has sold the intellectual property and assets related to its lithium metal production to Arcadium Lithium in a $15.26-million deal.

The Li-Metal assets that Arcadium is acquiring include a pilot metal production plant in Markham, Ont. 

Arcadium, headquartered in Philadelphia, Pa., describes itself as “a vertically integrated lithium chemicals producer, from source to product solution.” It was created earlier this year in a merger between lithium miners and processors Allkem and Livent.

Arcadium is already part of two lithium mining and processing projects in Quebec.

For Li-Metal, meanwhile, the deal leaves it to focus more exclusively on its anode production business which is based in New York and Florida.

“The sale of our lithium metal technology to Arcadium, North America’s largest established lithium metal producer, represents a pivotal milestone in Li-Metal’s journey,” says Keshav Kochhar, Li-Metal’s CEO, in a press statement.

“The capital generated from this sale allows for continued development of our ultra-thin, high energy density anodes for next-generation batteries. This investment will further solidify our commitment to pioneering innovations in battery technology.”

Arcadium’s existing Canadian presence

Arcadium ranks as the third-largest producer of downstream lithium chemicals in the world. As a result of the merger, it also has a presence in most major global lithium producing countries.

From Allkem, it has lithium mining assets in Australia, Japan and Argentina and a hard rock lithium project, dubbed Galaxy, in Quebec’s James Bay region. Livent’s primary lithium operations were in the U.S., Argentina and China, along with a 50 per cent stake in Nemaska Lithium in Quebec.

Of the two Canadian projects, Nemaska is closer to production. Co-owned by Investissement Québec, it is scheduled to begin producing lithium ore from its Whabouchi mine in the James Bay region starting next year. They will then convert the ore into lithium hydroxide at Nemaska’s Bécancour, Que., conversion facility.

The Galaxy project, ultimately slated to produce spodumene concentrate from an open-pit mine and concentrator operation, is still in its earlier stages. However, on August 6, Arcadium announced it is pausing its investment in the project and looking for a partner to share the costs in return for an ownership stake in the project.

The delay was part of a larger round of capital spending cuts and other cost-saving measures announced along with the release of the company’s second quarter results. The release also stated there would be no delay in the Nemaska project.

A “small but important” acquisition

How much, if any, of the Li-Metal assets Arcadium is acquiring will remain in Canada is unclear. Along with the Ontario facility, Li-Metal had planned to build a commercial North American lithium metal production facility. No site had been chosen, but Quebec was touted as a likely location.

According to Arcadium, the purchase strengthens its position as a leading global producer by providing “safer, lower cost and more sustainable process pathways for lithium metal production using various grades of lithium carbonate feedstock.”

“This small but important acquisition gives us a platform to advance new and better process pathways for manufacturing lithium metal,” says Paul Graves, Arcadium Lithium president and CEO, in a press note.

This comment is a reference to Li-Metal’s recently developed process to produce refined lithium metal directly from lithium carbonate. Traditionally, lithium metal is produced from lithium chloride, which is obtained by treating lithium carbonate. By using lithium carbonate directly, Li-Metal eliminated a step, which reduces costs and chlorine gas emissions.

“The ability to produce lithium metal from lithium carbonate will give us additional flexibility to utilize our vertically integrated network of assets while reducing the need for third-party lithium metal,” says Graves.

The Li-Metal method will “complement” Arcadium’s existing process technologies for producing lithium metal at its Bessemer City site in North Carolina.

At Bessemer City, Arcadium uses concentrated lithium chloride from its Güemes facility in Salta, Argentina. (Arcadium also produces lithium carbonate in Argentina.)

Arcadium uses lithium metal to manufacture high-purity lithium metal (HPM) and its proprietary printable lithium metal formulation, Liovix.

Additionally, it converts lithium metal into butyllithium for lightweight “green” tires and produces lithium specialty chemicals for medicine, agriculture, electronics and other industries.

Next steps for Li-Metal

Key personnel from Li-Metal’s lithium metal division will join Arcadium Lithium. This includes Li-Metal’s chief technology officer and co-founder, Maciej Jastrzebski. According to the press release announcing the deal, he has stepped down from his position and will be working with Arcadium to facilitate the transfer of technology and team.

At the same time, however, the company says Jastrzebski will continue to consult with Li-Metal “to assist in the continued development of its anode business.”

Arcadium has also agreed to provide lithium metal to Li-Metal as part of a long-term off-take agreement in order to support Li-Metal’s efforts to advance its anode commercialization.