ASX lithium shares rocket higher amid Allkem merger news

Man with rocket wings which have flames coming out of them.Man with rocket wings which have flames coming out of them.

ASX lithium shares are in the green today following news Allkem plans to merge with a major United States lithium giant.

Lithium shares rising include:

  • Allkem Ltd (ASX: AKE) shares are soaring 15%
  • Core Lithium Ltd (ASX: CXO) shares are gaining 3%
  • Pilbara Minerals Ltd (ASX: PLS) shares are lifting 5%
  • Sayona Mining Ltd (ASX: SYA) shares are leaping 4%
  • Lake Resources N.L. (ASX: LKE) shares are surging 13%
  • Piedmont Lithium Inc (ASX: PLL) shares are jumping 4%
  • Global Lithium Resources Ltd (ASX: GL1) shares are rising 8%

Let’s take a look at what’s weighing on ASX lithium shares today.

What’s going on?

Lithium sentiment appears strong on the market today following news out of Allkem.

Allkem and Livent Corp (NYSE: LTHM) are planning to merge into a US$10.6 billion global lithium company known as “New Co”.

This deal is due to be finalised by the end of the year, subject to approvals, and would see Allkem shareholders owning 56% of the company, compared to a 44% stake for Livent shareholders.

Allkem’s portfolio of lithium assets includes the Olaroz project in Argentina and Mt Cattlin in Western Australia.

Livent Corp shares rocketed 5% in the United States overnight and a further 0.39% in after-hours trade on the New York Stock Exchange.

Headquarters are planned for North America and the company would list on the New York Stock Exchange. A foreign exempt listing via Chess Depository Interests would also be maintained on the ASX.

Commenting on the news, Allkem CEO Martín Pérez de Solay said:

We are bringing together two highly complementary businesses to create a leading global lithium chemicals company, building on Allkem’s demonstrated track record of integration.

The vertically integrated NewCo will improve delivery of high-quality, value-added products to our diverse customer base and unlock material synergies. 

Lake Resources is among the ASX lithium shares storming higher today. Lake has four lithium brine projects in Argentina including the Olaroz and Kachi projects.

Meanwhile, the lithium price is also continuing to recover. Lithium carbonate (99.5% battery grade) has risen 6.65% on the Shanghai Metals Market to US$30,173.22.

Lithium hydroxide (56.5% battery grade) is also up 1.56% to US$28,219.56.

In the United States overnight, Sociedad Quimica y Minera de Chile (NYSE: SWM) shares jumped 1.29%, while Albermarle Corporation (NYSE: ALB) shares slipped 0.34%.

Share price snapshot

Allkem shares have risen 32% in the last year, while Lake shares have fallen 60%.

Pilbara Minerals has exploded 82% in the past year, while Core Lithium shares have slid 8% and Sayona Mining shares have lost 17%.

Piedmont Lithium shares have jumped 21% in the last year, while Global Lithium Resource shares have risen 2%.

The post ASX lithium shares rocket higher amid Allkem merger news appeared first on The Motley Fool Australia.

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Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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