Arcadium Lithium Unveils Ambitious Plan to Double Sales by 2028
At its 2024 Investor Day, Arcadium Lithium plc announced a comprehensive plan to double its sales volumes by 2028, targeting an estimated $1.3 billion in Adjusted EBITDA. This growth projection is supported by analyst consensus pricing forecasts and anticipated increases in lithium demand.
The company expects a 25% increase in combined lithium carbonate and lithium hydroxide volumes in 2024 and 2025, driven by completed expansion projects at its Fenix and Olaroz facilities, which are now fully operational and require no further capital investment.
Arcadium outlined two waves of expansion projects across its assets in Argentina and Canada. The first wave, consisting of four projects, is expected to be completed by 2028, doubling the company’s current sales volumes. The second wave, still in the development and planning stages, could further boost production capacity by an additional 125,000 metric tons, potentially bringing total output to 295,000 metric tons.
In addition to volume growth, Arcadium aims to achieve $1.3 billion in Adjusted EBITDA by 2028, supported by low-cost operations and multi-year customer agreements. The company expects pricing trends to align with higher industry forecasts, which would support its growth ambitions.
Following the January 2024 merger of Allkem and Livent, which formed Arcadium Lithium, the company has also implemented cost-saving measures, expecting to save up to $80 million in 2024 and reach its initial savings target of $125 million by the end of 2025—two years ahead of schedule.
Furthermore, Arcadium signed a Memorandum of Understanding (MoU) with long-time partner Toyota Tsusho Corporation. This agreement will allow Arcadium to optimize its global operations by leveraging its production expertise and utilizing lithium carbonate from Olaroz for its downstream lithium hydroxide network. The strategy, expected to be implemented by 2026, will improve operational flexibility and boost earnings.
