first just Livent the would take good I brief like organization moment Dan, entire and you, Thank commend to evening, globally. everyone. to a
safe environment provide adapted by to about are and environment them. all Our employees of a for taking COVID-XX brought precautions quickly new we the work to working have
current We performance. today insights Livent’s well as providing as will the of second into quarter by lithium state the market some begin
creating recent how strong. growth how, these for discuss recent We near-term despite demand exceptionally long-term by vehicle we will discuss best structural future the in outlook, a deficit. to both the we to prices, doing will remains And market are rapidly supply supply major the and in conditions. electric Also, is driven improvements approaching of outlook lithium lower advantage lithium what take is of ensure changes to some challenges, COVID-XX position Livent most possible importantly,
until uncertainty and market. consumer, weak end impacting to sooner working plans. than greater lithium to as instead some their lithium managing necessary, uncertainty levels, the on and spending and reluctant on recovery, Understandably, have average, of at and market broader commitments any returned and the plants generally, the shutdown especially. and chains impact of to weak the the And expected, for Demand created As ramp disruption the Europe has end second as as due lithium gradual the largely auto the despite this consumer were demand resuming was quarter China only OEM many resumed for by the demand chain. see their supply remained in June, continues its customer they customers was into U.S. of industry is the COVID-XX was much slowly very inevitably global the they significant not for in take own up this supply pre-COVID capital the quarter. production and This impacted today, that been pervaded we electric yet focus has vehicle volume visibility gain can
of historically are customers weeks their in communicate discussed year order excess to a only now certain needs fact, forward. have that patterns In several out, able
Despite challenges remain in all-time vehicles lithium purchase rates, a electric much non-contracted seen this, price penetration setting inventory to broader and encouraged lower other notably we indicators broader slow-down market lithium also situation. We most activity, markets, creating have additional high industrial in reflecting unreliable Europe. adding the by
have by much it working year-to-date, in is marginal lowest continue market, albeit be smaller this While trend was are the cost operating of spodumene The this continued of sales this in indefinitely. to China state We an increasingly convertors a a China, local have is working this this vehicle reduce for shipped demand, excess inventory rates in China driven are the testament who not lithium into with at slowdown of years. but lithium cannot cash seen believe producers. over ground In an prior now pricing which inventory transactions of desperate still into on total testing quarters was spodumene this not industry to create at This side. although our the cash fundamental environment, concentrate, range in coming in entered to the processed towards high have reported cost already we the We running sustainable. wide the this flow, year cash the change markets, slowed growing and a any near-term quality in position which some on levels their With incentive off material. to capabilities has coronavirus, supply been in chemicals. target by fed oversupply, electrification the sell our lower is even auto of they to rate through capital that reflects
of per profitable. the no below pricing now a $XXX cost large longer being spodumene curve is For with portion spodumene, ton, reported
capable fact, selling there existing producer even today In unclear on invested any capital, at return prices cash whether providing of only and while that a is it is investment. support believe expansion one and these kind covering of we these costs spodumene prices
measures Similar to cost costs in this spodumene the convertors implementing lithium of Some continue to producers cash operating covering of non-integrated until the hopes in improves. to as feedstock, an have incentive remaining resorted there is stockpiled and possible. to drawing lower much market the operation as temporary down ore other
expect started We to trend see continue. we finally declines and into imports spodumene China, have to of this
to following workforce able have with resume For brine-based practically right reduced hold any Argentina in lower are which the pretty for the COVID-related now. companies expansion all resume procedures we ongoing production expansion many been that production, to cost complex, on required a region in be much tends speaking, work projects believe operating shutdowns. amended and to carbonate, Chile approvals and Still, and are,
ultimate the remains industry doubt it the the by caused be COVID-XX, While years. supply the our no challenged on by coming shown in of to X. picture negatively will for to Slide add seen, impacted Livent’s impact these delays was a performance quarter for disruption as
notably of of reported $X For all decline earnings of per lithium hydroxide. volumes sold XXXX, the we second was lower and most revenue by breakeven The $XX million on across Adjusted driven were products, million, quarter EBITDA share. adjusted revenue in in but
in in Average higher work storage impacted hydroxide of our pricing in carried defer last impacted basis were slightly by other sequential on for build-up varying limit third-party of it applications own both the of lower and third-party previously carbonate, inventory to in year. faced and quarter, lithium meet tons uncertain volumes customers hydroxide high and both of of lithium roughly lithium carbonate. was XXXX, margins Realized realized as most were negatively some customer customers We sales a mix QX X,XXX they prices. hydroxide also into down to also produced Certain purity produced much from many end metal, by forward by our lower an industrial projected using order higher-cost extremely purchases their to to energy degrees. pricing continued markets While pressure environment. reflecting
majority we be second customer inventory some the While the delays this sold, to into the expected half will first margins, in of product half. of in this impacting being sold result XXXX, of and
shown and on demand near-term a weaker lithium limited been of During X. this Slide period on focused Livent areas has key as visibility, few
administer the First, currently Argentina, remain operations national onset continue minimal develop particularly weeks protocols production Due the operational. authorities practical a of safely worked with only since the to to of has of to virus, local committed with set to closely been and is our its manufacturing to important close safe disruption. all ensuring our downtime. Livent resume local work we and This sites facilities after two and government where and operate with in
half in to a customers And of that these that the the them will With to delivered the out their as as a year to delivered continue full while be understand in our today, commitments meet increase full mainly meaningful has although their in indicate continue production of to Many to commitments, we timing a volume similar to customers XXXX. currently volumes second their require these to close expect to market Argentina year. and cases. see possible be of what year have the also carbonate As quarter. best in to this they would customers volumes will time broadly needs. levels result, has delayed demand certain honor be achieving this are fourth critical our in chloride we in been This been XXXX,
projections activity to recovery. of Given remains a predict, remain very difficult in of the return to timing our more we of the fundamental levels pre-COVID measured
be these We we for we batteries have nickel various many sold which customers and battery conversations the as total all with cathode, many say respect nickel to especially which markets, today OEMs that large as through process conversations technology on specifications will ahead well and performance as able as lower-cost as continue have, What continued for commercial to an lithium But high terms. of well decisions, have in qualified cathode models with place to high the them. progress multiple coming EV Carbonate-based will for is potential markets quarters and to will the with important move of premier planned for passenger must be share focus launches, the in finalized hope remains of forms needed. very with battery required producers, shorter-range have, into to hydroxide. started of and are of and vehicles, Western automotive market, getting the EV of the These remain cathode new parts and production of vehicles volume being require more in be details model XXXX. can we
hydroxide leading differentiated their look a supply of lithium experience of producer valued set lithium decades, their route chain high many companies is lithium As increasingly producing as performance our long-term out expansion understanding the increase sourcing own and to our over and strategies. to long
today, ongoing We both be to managing dialogue we increasingly different range unique on and chemicals. lithium physical in the chain provide to times and sustainability our through a and less on of one relevant chain the On and with hydroxide chain methods a qualified challenge lithium helping unprecedented immediate production footprints, them within asked supply specifications performance understand wide deliver supply less provides including business. production, for This and schedule. long-term to our varying, predictable chemical the hand, are nature, stringent, insight lithium often supply will of to of factors cathode
years, five-plus to being the to this and to capacity we While markets, asked meet hand, diversify capacity increase solely on closer their localize to end to next production. other increasingly, OEMs away over demands their from are China-based by the
their needs future the developed current work a continue issue environment, relative chains financial to if be clear call EVs so industry will to to way be to update. need what to need growth not far, that with that as it for these will a the lithium become of plans the are its provide We capital, industry the Gilberto now have supply to to available But shortage I chemicals significant increasingly turn capital understand for to OEMs realized. and for the lithium whole does role an will plans. over own sufficient them what not their automotive be ensure may is pricing a help lithium