LTHM - Earnings call transcript Q2 2022

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Operator

Good afternoon and welcome to the Second Quarter 2022 Earnings Release Conference Call for Livent Corporation. [Operator Instructions] I will now turn the conference over to Mr. Daniel Rosen, Investor Relations and Strategy for Livent Corporation.

Daniel Rosen

Thank you, Dennis. Good evening, everyone and welcome to Livent’s second quarter 2022 earnings call.

Paul Chief and Financial are and Executive today Antoniazzi, Gilberto Officer. me Graves, Chief President Officer; Joining The slide Investor presentation our our earnings that accompanies our can website. found results, be in the Relations of release, section along with remarks after call. available be the from today’s Prepared will made discussion

your prepared and address our be available Gilberto Following will remarks, to Paul questions.

additional Given request per one any of one follow-up after a caller. to of would questions question on happy call the participants number call. limit the today, would be We we the and address

terms Before let represents various GAAP, the include in reconciliation concerning identified financial limited begin, and And references and turn Securities may best risks subject me we on metrics. Definitions not today’s vary will remind Information factors with on based judgment discussion in uncertainties measure, based include discussion forward-looking to to our over Actual these Exchange Commission. well relations investor you that, release upon our will the today’s specific and our are but information. those that factors, and including statements presented Today’s provided results with these in that to non-GAAP filings with various I’ll directly accordance comparable financial uncertainties. presented the Paul. most and as as to are calculated risks website. of call to a our

Paul Graves

Livent In the entire prices very we're EBITDA levels achieve lithium second compared strong adjusted everyone. a $XX nearly million quarter product the six-fold had has Livent's higher its Good To increase realized profitability. million of $XX record seeing to portfolio. evening, continued one last provide Livent market business and $XX with Thank achieving you, or strong some year Dan. quarter. of to million exceptionally QX performance perspective, across this year, ago

Livent in realized first financial XXXX the of EBITDA expectations driven XXXX products of its higher $XXX With expected to this million adjusted across million $XXX into to now range improvement at our from is year Last our expects structurally $XX confidence or million be in our Livent XXXX prior costs. full to to of environment the still midpoint agreement to guidance. at well improvement this announced week, that into we beginning to entered based to navigate lithium guidance. lithium long-term Livent lithium GM in hydroxide has is a XXXX, remain market XXXX. This ability Motors the in year compared volumes General as supply increased the tight pricing half that for had XXXX, and on Given higher a arrangement. raised of by delivers a as be least flat all our six

as This advanced only be mutual its a new of form we similar. Livent the is million which paid are As credited battery committed on and fixed by is of structured ever-tightening lithium of the long-term that can is to supply commitment, and delivered such industry for volumes to to of an these succeed relationship being And responsibility an capacity reflects a both Livent like XXXX. clear, our fulfill plan committed between our and or This is and battery structured General non-binding as equal puts by This both as qualifications needed General and meet such over our hydroxide supply to kind part not establishes will of is a the General is financial demanded on Motors General and since Livent GM in and and ton To is made the Livent how certainty to prepayment iconic and flexibility metric proven, real exactly of relationship, that payment important payment in the us providing advanced per what obligations take-or-pay will this producers as execute expansion commitment to agreement of increases agreements in life Motors and strong believe $XXX responsibility has long-term to type expansion automotive to time. all it electrification. commitments the Livent its an the credible be amount structure Livent next-generation the over its contract puts be be This it product the to in do the producers. commitments that; name Livent Motors foundation to integrated for funds transition to as joint plans. the Motors MOU which that a a a build partners.

accelerate to As us our to easier commitments capabilities prepayments expansion to for regarding customer future continue it make scale, make volumes. us to customers allow significant and we

to lower we localize to have ongoing Americas our Hemisphere electric production also know strengthen over This critical month Quebec, -- to growing solutions, significantly about decarbonization the briefly in Livent want Both supplier a predictability operations. the I a global investment chains EV expand to we is electric of why decision set the a time, Argentina heart footprint battery-grade early be with of time. years, the coming including data bring X, lingering cannot of and XXXX while also will days that commitment also supply supply climate capabilities all and emissions to for Starting and core We Livent. sustainable to well-to-wheel plans to and modern has this said, Although in of battery getting fossil the and companies advantages. straightforward the new the is strong in resolved. comparative vehicle debate tailpipe growth production materials lengthy reduced have result a to because entire dictates vehicle on our footprint batteries vehicles carbon their basis. last seem shared market. in of have relationships. total publication electric so cycle well change than its with footprint At its with in projects the for businesses talk as With emissions. into gasoline-powered responsible associated want and to about EV, Western of higher end-of-life a and continuing a the volumes battery meaningful firmer because relationship fuels a in on over timeline We the and conclusive reliance EVs hold logical long-term vehicles highlight commitments. revolution benefits qualified And sustainability customers over sell a lithium is urgency vehicles, limited from to emissions complementary add strategic In our is regions. on lithium-ion discussion includes overall hydroxide and we expects significantly report greater been That industry. to gasoline-powered that with the the sustainability of to lithium transportation. want This supplier and now for The is key General carbon and EVs vehicles, carbon continue challenges Motors to for to desire Slide Canada. need the chains and other battery life XXXX but entering as longer-dated agreements we questions and

greener. counterparts avoid determined a total In conservative and is grids material widen same to the analysis gap International on expectations there of investment chains. battery fact, for as the global we the electricity be battery and only at across the expect will XX% Energy become supply currently EVs actually emissions This cycle Agency EV, the the estimate that their life generated But XXXX greater time, by responsible average. production gasoline and by

other on impacts, a and the sustainable and and We sites. fundamental components vehicles, mining local and minerals in footprint. conscious generation electric at near that impact we ethical, waste water there use is manner. a have for If goes improvement. to top that extends Livent. the a as just for sustainability to why you carbon and This go will well clear believe safe, is look including as the priority opportunities are all be responsibility operate socially continue communities This into manufacturing socio-economic beyond It environmental

neutrality meaningful by reductions use, in in establishing focus in our disposed lithium by local include achieving dual renewable water in is way. intensities in innovations this on our differentiate XXX% using communities. A growth we sustainability less increase and responsible XXXX, reflected ongoing and and to our resource-intensive expand the efficient the various profile, and overall our to commitment forward path and commitments by obtained and report. a These even going broad to including rights operations our benefits make the to sustainability plans see describes across make It our which of reflected ESG, more human Livent's energy sustainable key XXXX. waste and You'll technologies operations gas all greenhouse aspects a carbon efforts operations continue commitments advance production progress process to

there no data well production of then have such to ways use. one there's water the do in reasons address local solutions. we them. participate is and assess initiatives we all science-led manufacturing on and these by sound as impact approach that studies denying course, using things, but impacts This with Of IRMA are a sustainable extractive to finding and responsible we actively as as challenges third-party processes as most environmental At minimize Livent,

our us these deepens Our improve. engagement helps in initiatives and to and expands understanding

and Minviro importantly, growing National with been leading Labs. findings key life more and Argonne commitments we've conducting these responsibly. deliver broader products cycle our to operations assessments assessments The LCAs enhancements further provide on studies insights drive across reasons, similar or from For of including our organizations, and our to

believe competitive of as further together, for focus grow will sustainability Taken as our all enhance to continues these we our actions a position customers.

COVID-XX Slide shutdown during regions some to policies, due tolerance market near now Turning zero in a disruptions to complete quarter lithium be Despite strong. incredibly second X. the demand key China from observations short-term to in continue on

six The roughly million higher XXXX full prior reached the back the X.X we of Automobile production of Association XX%. XXXX, its Manufacturers months vehicle vehicles energy increased versus Chinese look first or China forecasts year by new year period. EV at As has new for the highs of sales XXX%

outpace be our is to the in even continues does growth in battery That but tight some first is degrees. limited online more down, What lithium say that certain projections processes extremely probable market no not over of it scenario there is up supply additional will see growth of through supply for slowing the coming demand the varying in China market tight. to installations near-term the the supply even percentages. shows not complex industry Additionally, to to With continued clear future. to reasonable be any coming lithium the structurally hard year qualification where years lithium half and of long are total which the remain foreseeable relief forecasted a is by continued has and higher signs not products,

particularly highs prices, that across that on or that fact justification in from lithium different stabilize, the China, partly number riskier surprise situations lithium at little apparently So all It's due important that prices quality development it decrease forecast have announcements will the average seen started financial are levels regional, there's in of the believe the in evidence data. our is to realized near-term of Conversely, attractive in projects. clear not even side, the even explained while expansion during by recent the note slowdown rises historical China increased levels This to prices unlikely for prices, given contractual and the dramatic demand. industry see lithium the less we our supply no resulting at in seen a to across on we period. is dramatically a current reporting price

scarce taking developments have However, needed. making projects comes market human period an at bringing resources acceleration supply and a supply. at the that additions is especially time as in multiple lithium capital when shortage higher down to and of be followed are place. very at parts inflationary undertakings means top slow multiple where understand, well pressure which greenfield from participate required projects due as are challenges complex a pursuing supply most time same for costs new OEMs Expansion for engagement difficulties the of And has securing are difficulties documented. this to can course, industry more before a this, the battery-grade is necessary projects unusable of input announcement more more in time world these nature. growing markets, a experienced to expansions who may labor fundamental are structures longer, that from of in commence as proven delayed next tight that focus their and through equipment moving same particularly communities of On permitting local There and ranging is processes from remote been the couple in and for reasons employment projects not in of and sufficient pressures least to lithium finding and from realization in opportunities is have fact the these by very projects the Expected to a royalty greenfield consumers those pace meaningfully of competing lithium procuring the decision-making critical And is Understandably, becoming the environment there extensive this are with those to this, especially labor. on from available lead for time-intensive continue suppliers. long many development. higher automotive years, activity with

to to much and more development. sign capital battery all across of and recent involved by procurement in back across suppliers, provide And seeking announcements, with to products commitments and they conversations. demonstrated As including ours all are Motors, material are material increasingly OEMs General stages becoming

to that the providing accelerate turn of projects a many to not continue non-binding development over simply or I at technical them fundamental of call loan Gilberto. will will now commitments to MOUs difference to do believe challenges we the engineering and face. However, make little will current signing all

Gilberto Antoniazzi

Paul Thanks, everyone. evening, good and

XX% reported was X. this per execute million million, quarterly quarter $X.XX demonstrates our This performance Livent of $XXX Turning logistical pricing adjusted of China realized of to products. Versus due prior in timing as all revenue our $XX financial adjusted earnings offset with delivered the was record more some quarter, rather LCE lower slightly was of ability and share. environment. than of higher market reflection a to volumes sold of is revenue to much a The second not Slide lower Livent strong for up diluted EBITDA demand COVID-related across lower the challenges function volumes but by total LCE a well and lockdowns. in customer as

take to and was in than higher lithium also ability EBITDA across our step-up our was prior were all costs butyllithium versus just year. XX% prices lithium adjusted Costs last higher of of to such material, advantage higher feedstock a price. due as largely roughly prior metal quarter This higher Second due business. the quarter Xx the to rising was than and for products market quarter, meaningful

on with balance has million cost pass Livent undrawn. revolving the through most of million However, customers. of remains and facility able higher sheet finished $XX been this quarter $XXX to cash to We the our credit

closed forms -- ended the with shares sorry, shares with quarter which the Nemaska Livent a quarter. demand outstanding, interest Nemaska. higher, second of also $XXX the was $XXX market million inclusive conditions. ownership in common lithium in published million We roughly the additional we all of strong has lithium conjunction half exceptionally tight issued during and in of XXXX, now first transaction moved prices reflect the XX% Through

higher market the remain We were quarter. to levels the And significantly in expecting at the sequentially this likely XXXX year. we these through products realized remain prices least into second expect are across similar conditions most and prices at first in remaining to of quarters rest Livent's XXXX. half all of the

to high lithium a and purity more carbonate shifted in done of short-term pressures hydroxide has setting sales. sales As businesses, are acute roughly a half portion it This its this butyllithium we of in is annual also those second metal further our Slide some all XXXX, includes This basis move actively on particularly X/X our impact year. from as input business volumes And price positive to includes the outlook address of which as has exceeded pricing our of shown experiencing result, uncontracted reflected Livent which the far we more metal. we of and where our was improved initial cost largely assumption, X. to the

meaningful change XXXX As does last a assume capacity total to be reminder, available XXXX. sold from we basis revised expected LCE The to not commercially compared flat expect to no be guidance. guidance versus volumes on an our volumes expansions as any XXXX are in until volumes

$XXX XXXX, expectations the realized of projects guidance is to pricing for underpinned range adjusted than the is XX million. to year now to and midpoint, million and range the At higher all across full million EBITDA and $XX revenue in $XXX $XXX be the this range the products. Livent of respectively $XXX lithium to prior million a higher by be For million in

And firm Having I to in the expectations through capital the turn year. should of Livent's million expansions. call integrated to second key the spending in our capital line QX, of is $XXX a $XXX producer half into is supported and of ahead spending back carbonate operations for has million mark the to significant XXXX accelerating years, Motors, As the now projection commitments increase $XXX in million to unchanged. still us And with prices. higher will generation more our improved much ample would with the provide continue pricing, retaining regions. to million generation. General also coupled it record. lithium its $XXX be will market Livent operational around next and from to both from hydroxide by of This come of outlook supply, supply fully with advanced around additional advantage adjusted advancing while flexibility. a with in predictable Livent to flow a provide great cost of build This business as payment range and lithium for liquidity position, increase look year the we its This is long-term with our $XXX enhanced a production products cash agreements and predictability ability of $XXX security markets year strategic position increased million a cash to remains spent full million volumes few take its where to of customers, differentiated online. ability base XXXX deliver able the with core position and possible, and by company cash Paul. Livent to which

Paul Graves

few ongoing to want we related all remain expansion I a of our to work Gilberta. with our on announced Thanks, comments reiterate capacity expansions. that to schedule conclude and deliver

following first in quarter the end be lithium carbonate we'll of commercial near-term, expansion Argentina production complete Focusing lithium ton XXXX. of quarter. of expansion XX,XXX the on the end will commence Bessemer be metric September the and of in the metric this City The company's year first in this in hydroxide mechanically of ton commercial during and the will year mechanically complete by by X,XXX production

sales at lithium XXXX expect on carbonate processes company track do levels. double nature coming another tons of the add next also China available XXXX which to Although by our XX,XXX the metric total until and to from this we online. a is LCEs will Livent from meaningful end of another expects additional of not tons unit of XXXX. of hydroxide that year carbonate capacity of capacity new end start the Livent's Argentina as qualification location production lithium feedstock be used of in The the will nearly add given timing by the in XX,XXX metric

is plan. construction part year. our we on a provide earnings on next This be finalized plan more And Nemaska its call. by update is of expected detailed to quarter Finally, concluding the third Nemaska this remaining work all end as of the to of

will as the for coming hydroxide the half production and our of fully in capacity to turn metric lithium longer-dated progress integrated a the battery-grade forward our XXXX. As tons will an all projects. Nemaska further volumes expansion we of in a now and questions. on start XX,XXX in first asset back bring updated We to located Quebec, incremental look you Canada, Dan second be with call to expected reminder, quarters I keeping advance online

Daniel Rosen

now may you, Thank Q&A session. you begin the Paul. Dennis,

Operator

Mizuho. the the from Parkinson line And with question of Instructions] [Operator is first Christopher

Christopher Parkinson

key other some Paul, A GM very you’ve made discussions of contracts time. these customers? little more your with evaluating for simple on choice variables just versus OEs such potential to the question. offer quite bit an you that a some been attractive obviously, Can color

Paul Graves

an commitments and gives developing capabilities into insight it's quickly it think long how them I thinking to gives and frankly into Look, a our we've for an what And get kind Sure. you [Indiscernible] us it been been of their -- are. has so time. don't insight these

think of each really them, engagement And you it while so of out I with does figure with sort us starts want. what a long-term

in As the I can't call, everybody. we serve Chris, said

people mean, a is actually supply the sense really views localization for we been share believe us. of pretty chains makes to of how lot looking pretty I who important So supply clear and chains share America's most General our evolve view. that to as certainly and we've that Motors can responsibly localization

I certainly commitment way of And make. in us think each we commitments kind what is the and every are many thoughtful a are thinks about not Motors cases very also automotive same General willing company of of to long-term on for. side indicating very for the giving and making payment, it's be By let's too. much we commitment the the clearly us they our looking here. clear, a were that advanced Because thinking the prepayment, commitment a are

with to material have and doesn't as as exist a make that either we that the visibility now the have would frankly necessarily us chain capacity much We qualified of like. supply both sure today into

And from is course, this getting better. they able us look And part be that do just of together to for and And engagement get commitment of we were senior of as us. to we General as that able them carefully Motors know an from level process so to work this to closely. and requires

factors go So really Chris. into lots it to of manage,

Christopher Parkinson

this more other anything this to up quality opportunities high corollary is payments That’s asset the products? your producers, expansions become or you other it’s helpful. and mean the some look for and as other more if upfront about question producer response, or open whether that these else deliver or ironically that ultimately about your just and does add? of norm, of there of diversify to ability kind actually And a the of more part of is Is I to to

Paul Graves

that what it you we look, mean, have with their to we each have view I counterparty partner here, ask that is. would deal of each

-- there or OEMs who more the who's are a you have in down what safe frankly committing Argentina. even a about, whether on a of confidence automotive going industry most with versus do period are I make, I this. turn be people us different might grow just And our new somebody rock a we I way prepayment, that. It’s otherwise be resource to somebody a opportunities Australia to to is they the over you’re form partner by somewhere that not open lithium commitment has the that hard a that’s to and capital thing MOU, or hearing commitment a still etcetera. in to think like who stating able It’s demonstrated absolutely or including to a can decades think that to resource to mine Motors committing asset think non-conventional probably when that’s base in else committing whether more that learning an loan all very willing to do, about I'm extent different that General ground

Operator

of line Chris with Loop question the Markets. Capital from next Kapsch is Your

Chris Kapsch

sort made you through foreseeable being of on tight first just you that half revised the the of of outlook your guidance, just see into ‘XX. So future said shrunk comments as pricing fundamentals the structurally also the through you but

also carbonate or time? over close just I’m prices you pricing and parity on those reconcile of if sort comments? see you do outlook, So diverging could wondering hydroxide And remaining to

Paul Graves

totally even not is out quarters four forecast to forecast as an prices. industry ability awful Our

hard than the It's sitting is way what of and feel year. QX the I by change QX I And just August, makes in of next year. confident suggesting for quarters over. or forecasting to next see not here me ahead. this of further willing in the them environment end so about rest that year not three much am QX look to I'm this four

through I changes the the I XXXX, why know that's months were And to first so moving three, that message four, don't of feel confident XXXX it's makes mean of the perfectly honest. next we up. five in the guidance want I half our the that be in we different what that to materially turning comment end just send

I'm read that part sort the coming with second really Chris, of that's where comment. think I sorry, So question, I'm of again. your

Chris Kapsch

prices or now see – to at hydroxide hydroxide credible right time battery-grade you over parity. on? close versus more as and carbonate of Just hydroxide sort diverging are those Do carbonate were comes

Paul Graves

hard predicted you not see to just a when answer let's to Everybody answer. It's It's then, they've qualified. supply got much gets qualification make. shorter more would hydroxide. more one what difficult to get from most make us in tight, logical difficult is It's this are is why longer Qualification by The much market. largely processes for qualification honestly processes happen, you commands of But grows a today. quick, shorter. similar decision would not if making that create likely know not if price we base. a make course, Carbonate and you'll why hydroxide, and as quite rationally, hydroxide. if it in a does tightness smaller especially I a quicker mean, producer supply just

a maintain So premium. expect to hydroxide I do

stable in more the the I that nature because hydroxide. of tends it be contracting think we've past seen to in

the think be I too. that will case

some down made, of just as LCEs in should carbonate. to metal particularly version When form, a make decision just knock-on you'll what way the have the discovered of challenges We've in said I carbonate in volatility pricing. today get the it. somebody one because all think make that has thing the lithium decision, getting to I make of against predominant is simple most a to there's you are in that we've least, someone everything metal Having always seen more referenced at effect. prices because that, of products

in And I in incentivize to needed return continue get why are be in predictable you'll invest hydroxide. from hydroxide. think think to that, to to for pricing going I commitments more OEMs it's certainly people stable and

Chris Kapsch

if at GM on just partnership agreement. is was question curious And this contemplated in follow-up that if My helpful. why the just not, That’s not? point Nemaska or

Paul Graves

an remember just still entity, is independent that. Nemaska

its to Nemaska And anything there process yet. development any -- so do It's too be still early commercial agreements in while that. hasn't won't and contracted

regard. there. contemplated to would very great the doing us Clearly, So if and Quebec what Motors, that both to we close forming in of is relationship there General not with remain are this disingenuous in be and see didn’t opportunities look we

a in as we Nemaska partner have large IQ have a do. We just sales who in

And will early both I Nemaska a will so require little make around decisions Nemaska by to those Nemaska’s are it’s but made still And IQ. too said, of the be whatever as approval and made commitments on part. Livent

Operator

is ISI. Our the next of Steve with line Evercore question from Richardson

Steve Richardson

if Paul, concluded stable just you’ve could agreement, the talk GM think I wondering about, about customers. as of other was your you

shorter your And guess are Does how the way? some follow-up number for volume up in tonnage? the the guess – is so many create types seeing ‘XX lock you’ll an of agreements that you term convert and the to business considering your growth of right existing of the to of in have I term do same some are the this the is, opportunity ‘XX agreements size again, question these the contractually. And customers think I is, you of to

Paul Graves

covenant and somehow why running They're of running about regional with single to important Yes, customer questions models wrestle strategies and hydroxide-based one really batteries. and in a and that source different of at batteries in where have mixes different point we global is good it's out development. every Look, different OEM and and single we they think They're strategies. probably that every different how regions day. some stage I their

one And for it. a size nor so want all fits have would customers I we our we don't think

looking means them. And continue. and want and them effort we're that that have continue agreements and long-term we lot time today, said to the into definition, customers. investment to agreements. we've put think we We we've build want build a those supply to I to grow of supply By that

enough. more strategy of our so by many how are regard we existing with the any With And a or to is change of does imagination in adding a stretch not tactics customers. customers couple represent

that stop we be at you those were your at of still market each wish You bigger three will what in share could terms see of customers. certainly and

I a question. least to future. want more double to much will it's that size a we and the a going more double size next of makes think be we three global more sense. for expect or relationships I us, at the years to a customers. in We going couple want to we certainly regional market be two, the that that as answer again in to than then of rather regional add taking over the perspective be It's on question major in hopefully at four of way addressable would add

we forget producers way to support wouldn't bunch relationships as Now, we of multiple from away that that their do that with I cathode the chains intend to industrial that customers. as whole continue behind by well supply have are OEM

which have obviously different very is metals-based our business our then carbonate butyllithium We businesses. and and

hydroxide. have to continue we diversification we'll relatively concentrated remain if So in even

Steve Richardson

more, I If just slip could in one Paul.

of the relationships in important I And some with of regulatory it’s you that been of address. just seen some just around and in around out the framework regards headlines to was There’s and the think could framework. we’ve some to address Argentina, headlines? of quickly your these that if stability volatility the wondering I province volatility regulatory

Paul Graves

not sure it's complicated addressed long quickly. But a we've time. Yes, I'm Argentina there is possible to be been but

I Federal and around time solid. A creates complicated mean We very lot -- the at is lot dialogue certain noise. with there critical constant and today, which for topics. the actions. short-term major which the making Catamarca caused responsible from lot very It two I right them And have we always to economic into have don't and ministry it, it, Province and both is it most have biggest invest The government, that We it. is a remains the of head of pursue we it's And we that a matters agree the complete us been But frankly there's have with We sure we've to all to federal provincial operation. administration other we're of really of communities of each through think provincial sometimes to is Catamarca. same now. us. and trying lot relationships. disagree were isn't with operations bluntly changes really I We the relationships, at and impact good, what increasing agree structure of Province communities. to responsible development Argentina, we of of the benefits time in the or relationship transparency thing economy the it federal see a that to invest is Catamarca in think the expansions on the don't ongoing of and a noise. level enough areas federal near-term

Operator

next line with Your Research question Vertical Kevin McCarthy is of Partners. from the

Kevin McCarthy

GM mechanism your describe the pricing embedded with lithium in that’s you would how hydroxide? Paul, for contract

Paul Graves

for wait behind predict I'm I to was principles I is we're disclose prices were this a to not going I and a what too appropriate of obviously, It's details. there couple not that long try would to think surprised attempt the think accuracy. so not Look, Kevin. so. future to with question, desire much confidential commercial to do say But

involved references disadvantaged any same party But tight in I we the being will pricing incredibly also loose incredibly ultimately market-based in certainly variable the be set. at avoid economically by wanted markets. way the or either are to way So think time,

put profitability moves to we've help in up an that move General down where mechanisms prices Livent's significantly in profitability and where environments in significantly. place pricing protect So protect Motor's to environment

each conversation, the important So they we and XXXX parts of both is us to look the of be enough And they in hydroxide smart say were XXXX. look, know price at are either the going structure. to really of were other lithium important what of and bluntly, parts

sure And piece partnership an that other is of to keep to of have the that so it's both only Pricing want. we delivering that a each with what engaging but recognize is we one. us important make

Kevin McCarthy

It makes sense.

second question, ask to about I you As a volume. wanted

that be volume your for in will flat view the affirmed this prepared year. you I remarks, think about

correct, in appears of have well. quarter at year As amount to If I quarter how volumes that volume I and half your the that’s will it declined the higher the characterize XX, you of sell? you expect look half the believe should volume was as of first as that the back relative though Slide true in and sold would or the we front sequentially

Paul Graves

That [Indiscernible] is works, correct. absolutely how

Operator

Your next Molchanov with question Pavel James. line Raymond of is from the

Pavel Molchanov

bit. lot market down me the lithium cycle let the What of a parade a conceptually? your on bullishness cause a rain in but in mind could little So

Paul Graves

point this change just about could with the lithium larger, underpins global think what So this, let's through to China, flows events structure. I of particularly how major particularly all given much China. mean in that we can

in differently direction, how we have there around could type. I of that whatever major that predict but manage disruption don't get like to You that to over can't or a look any my business one. help

some imagine in been and it's to reaffirmed in policy that drive difficult their electrification, creating China the electrification value in chain think in of the to frankly very and pressures are recently incentives China to that's I policies. has place demand just that entire Europe, leadership massive of with particularly as drive

China end going to just think be important not changing. location. a demand to I but is continue that I a immediately fundamentally an market, see location manufacturing don't

stay. really by for the policies is because Europe think or that I driven China. are in -- that think to bad from reason, to whatever is away a I expecting which anybody them don't think the on same, I policy commitments different is the here change good are Europe power sudden they largely climate And reversal

difficult there. creating lot right much more I demand It's and think of lot that now, predict. the U.S. clearly, be is to a demand expectation a not may of

you to acts confidence. the of clearly that some -- at right the think that pass looked help build now I trying been have

really the U.S. I the in shortfall But electric fundamentally that's continue or change think there's for going demand side. me see It's single to to vehicles maybe favorably. demand a though hard there. decline consumers a look to at area

just you tonnes I few probably does lithium, have projects than we in LCE or our sorry, side. XXXX, an more. very come somebody for new up tonnes, basis mean total in certainly XXX,XXX I mean. hydroxide demand online market There's or for supply XX,XXX then, that question the So XX,XXX are -- on bigger on for lithium the

them deal when to growth. flow the seven market hard XX,XXX tonnes is or need we to of a a with it's project So six single the and year just

as see the short-term product don't big to I struggle anyway. comes from the well supply I -- in So where

Pavel Molchanov

touched just to are credit States? domestic these but ago You a tax relation in being your content on proposed vehicle thoughts United rules electric on minute are what in the the

Paul Graves

semiconductors, domestic single quickly challenges, now. think concentration the maybe and maybe I a a when that lot all feels it post risks have more But content in do think heavy and of I of would country certain anyway, the the understand happened the people manufacturing. such dangers of allowing as not

General so and to chains desire They need our all sure. helps Motors don't reasons. others economic legislation supply And I for for good and but think business conversations strong in with legislation reflected diversify

Operator

from line next Joel Markets. of the Your is Jackson question Capital with BMO

Joel Jackson

XX,XXX tons available in of LCE disclosure QX the guidance sale some reviewing from talked having of available of you LCE you XX,XXX tons gave Just in the and for deck, about XXXX. ‘XX,

still worse? have this or didn’t set You or better same slides is that of guidance deck. Is those in the something

Paul Graves

the the the product and -- at on timing mean, Joel. it's times. reflects, comes that which it -- No, I same, Unless ramp-up That that's capacity moment, still time reflects qualification and online hasn't new the changed.

than anybody, be add saleable And We that a speed individual can us numbers completion we to them The But revisit closer you don't pace units can in XXXX at better the fitting. as hydroxide product. start and lithium which the think of know better get you actually see we we on allow capacity. as so switch on know qualified how just these had I think new time. to what which things on we bring we'll mechanical much in comes get we in then I and to near will to carbonate those and position will

Joel Jackson

up of obviously no them $X raise here, I help obviously you do what a mean money of didn’t Quebec? as bunch again what and capital, happened Nemaska with $XX over with upfront to wanted partner the really offtakes Nemaska last signed billion. [Indiscernible] amounts million, to time small bring question know they to a of I

MOUs, of couple projects, know not of of throw out seeing commitment go in and lot bunch with We’re OEM what at that all, another last don’t junior a weeks the means.

doesn’t Would what to you couple of got your a OEM? leading be paid existing willing have some As like maybe a or at your a MOU, help sort leading or partner you million couple Like capital this what’s hundred of beats? upfront a you that with will kind deal Nemaska dollars sign an of million did to meaning? IQ, to of – get dollars the commitment from in

Paul Graves

customers supported ourselves what a time loosely we as we will been have never are with in we So, running offtake. two customers I'll every or becomes call our that fact things conversations say with them I correct job potential think

engagement. factory at agreements up that to deliver It it offtake an real win and forms on agreement can't copper lithium chemical day That the require a You supply hydroxide. seems goes.

free So did Nemaska we MOUs looks don't a anything that supportive option don't we time. last is sign what We be of and like the that would that. purchaser. not sign And for

We prematurely Nemaska. putting not on to debt are also supportive of

can we it load. know support an by business, think taken a inappropriate appropriate at clearly that down was debt But as a I that an time. little bit

a those that eye get customers number to be will with a Nemaska the of completely funding way. customers we place we that today we will IQ again make of IQ right that comfort the make on and function which eye of given There a broad lot customers willing just what with like actually doesn't being will network of project. it's we have today. It's to Motors of we make are with sure think in them are of get gives choose recognize, -- and the I We have built they the their development for product. work said where And more supply that that to to contract see General it chains we not commitments assets a kinds are look, sense

think talking years to what than we think couple them at and to Nemaska different time, them look same well itself to about but get the giving lot Nemaska partners, making of very commitments I need, needs. of lends today it going the the talked right and what working finding they calls with what been for what Nemaska a about it's now, So on we've I frankly a while

Joel Jackson

some based look strategics at on history find negative Quebec other projects? you little the more Do of of a

Paul Graves

Argentina to or Compared compared well... to

Joel Jackson

Well, started a anywhere else compared Quebec to luck but [ph]. bad from

Paul Graves

policy yet. who hear its I'm about heard kind trying things think good the I I've Quebec say disadvantaged of put incredibly broader I same somehow technology say a I've very haven't seen I right Quebec I people opposite. about with the there. have comment they're they lot it support. regard in I place seen to infrastructure places. think attract. way of just not and the the to in Government being its have Maybe battery this has the to actually thing. I or policies But frankly a in coherent looking

successful hydroelectric I presenting very green power, effectively. in etcetera, but been assets, think just not power, resources they've physical location, geographical their the very reach

the I I willing think more customers being one associated probably of is hear favorable be Quebec jurisdictions with. to

Operator

Your KeyBanc of Capital with Yefremov the Aleksey next from Markets. question is line

Aleksey Yefremov

further price? contracts from long-term Paul, during terms extended you renegotiated have any you as such have quarter contract portfolio other the or

Paul Graves

No.

Aleksey Yefremov

pretty So that’s steady.

at of of look is them if under the the for your maybe long-term pricing could a that hit? So you can what ASP long-term maybe hydroxide as what be? and contracts change update feel for contracts, those ‘XX, group a of that’s contracts portfolio price percentage how to And do likely you be on ¾ have meaningful

Paul Graves

of don't with. change. will bunch expecting they'll change the I you won't increase nature bit [Indiscernible] go of they I little minor to Yes, be -- for I'm at a reasons because think because of a all of not an them

smaller they'll of none say our proportion both into year. nor more major coming would that has place of I we and think contracts I designed So they to this I back good they have -- to that idea there's been But go we to way on commit changes. for expecting the next stay reason not mean, up on online in bit it committed are. we because I'm little represent will renegotiate of sides, unless these volume before very will next to we year. go average year a next a commitments no, revenue customers, were a

will exposure and on a market an more year. next So basis we relative on basis absolute have

Operator

question Your of the from P.J. is with next Citigroup. Juvekar line

P.J. Juvekar

of America? – commitments And to of building building announcement. what your conversion are demands this building does the capacity capacity out that incremental meet Congrats GM North involve on new Does it sort involve on GM GM? agreement, in

Paul Graves

commitment how, entirely what It's commitments as those to meet We have regard with specific volume include both to and clearly and commitment. commitments. us and commitments we no a up do made regionalization made when to those commitments. a We've

But we -- will nothing not we meet those commitments. specific. absolutely -- have So those there's

as that. how we We to freedom have complete do

P.J. Juvekar

commitment? what that you What mean? do mean And regionalization by does

Paul Graves

They're in materials cathode looking produce they to their close to have where lithium their batteries. then where they produce ultimately proximity hydroxide produced and very

So need in same wants supply made build be in America a be as also production, of technology. want material don't GM will, commitments processing cathode both that material to to And North America. their lithium final produced have into North announced for partners battery those hydroxide cathode North the hydroxide cathode raw chain they They that chain, if to couple capacity of to the they've of you the that come but from America. in step region. partners, lithium think the now I

P.J. Juvekar

still And of silicon years have significant about anode talked advances solid-state lot any lithium then away? or metal technologies seen you batteries. batteries a or people a Have these are few or all

Paul Graves

solid-state get expensive more One so now. I about a thing metal I'd careful. twisted lithium excited battery tell lithium you is is mean it's if that not or a the get you're lot solid-state difficult on metal and economics battery to quickly

quarter-by-quarter as in put So a to to look, happen of that will performance much there. just have and expect few depends technology to extra move basis, the you tell It you incrementally out you, to I it get going of technology. metal solid-state the do cost that, relative on on not solid-state a don’t quickly. is, materially the question I

it will me so same. feel I the And you and quarter ask each can suspect

there that conversation to changes or solid-state. any imminent see having shift be kind an OEM automotive anything suggests of I of that place, an While don’t any may taking suggests expectation

Operator

question of next of Bank Your with DeYoe line Matthew is from the America.

Matthew DeYoe

the XX,XXX tons end next of bullish. year on to by add track clearly Livent’s but metric

the So XX,XXX aggressive? XX,XXX? the taking some why what primary is your some much at of more peers Like of that bigger XX,XXX not or expansions. blocks or being to Because expansion swings production are are

Paul Graves

people going resource rates or you're we really never These half to if lead our it's about at pace. building it's doesn't that infrastructure facility the don't only as investment years that take to or The The people I as the and visit when is there's to you no that infrastructure some be to remote. commit, are mean, significant in of grow those three remind doubt six be, can do of that ago. getting to infrastructure primary project, and a large Will they market grinding in so see were answer at the how It's won't way for just source fundamentally lithium not to make wasn't but And today. has that's and mines that site not are infinitely time you capital come easiest that if processing not is needs do And operation. about we you I a not we $XX to in point at may It months. and where on that of more built. hundreds easy invested you're why say, locations challenges expandable can expanding And resource these think of started ago all that or just two Argentina feel the we above-ground It's one the year it be, not the dollars of key It's But this in it is the I yes. requires it $XX future, for [Indiscernible] some be about aggressive don't it. to what when just much needs a may -- understand. exist. hundreds major, be. millions that

to it make large yourself a commit so expansions capital of needs, And to without timings can commitments that willingness price. and frankly build and you've got to expansions to to meaningful firm on difference to

Matthew DeYoe

what the side is I end, guess at were I – like the – context. I contract the end it lower firm. the if appreciate higher to look is the on guess, pretty we seems guidance, would and it

or the like? what China half. China end or the look get assumed the We that price Asia need end to low high Do have more traction volume does end? But to second in on and high and on coming in you in, what’s

Paul Graves

timing mix goes who question. around it's quickly Easiest a which shipments a and to It what can ship way sort pretty say of where. customers, mix depending on of move

depending of in or the volume to the QX factors stuff going seen our by and there. You've Chile, for example. largely in inability stuff driven Argentina China, out inability control, on to out of QX what's and move outside move on Occasionally, either

of a it. price this So didn't make a complete have to many over control take And doesn't for lot EBITDA. because moving a to is tons a that at high difference reasonably it

range. unpredictability, the It's So that's end. really what's supply particularly driving towards chain, logistics, year

Operator

is from of the question Deutsche next line Corinne with Your Blanchard Bank.

Corinne Blanchard

have you like view on been the compete hydroxide converting you intel Most on how upcoming my [Indiscernible] view have third project your be on Do do with then some of side, the Australia? any they in Like the many there facility upcoming you? can of is that potentially And potentially view obviously in Argentina. will

on base the You infrastructure, of touched etcetera. lack

your on interested Just hearing those. view in

Paul Graves

process particularly Look, been building a not new in I hydroxide has for think plants Australia successful entrants.

I making come successful is and owned -- naturally from for competitors more I successful I be great. ours. thing will I not they one a tell there customer or and very generally by absolutely ones at doubt couple point have operated Southeast will be credible and It's away they a of Korean Japanese existing think difficult. mean is big of there China. you be that's they will Asia no lithium will hydroxide

quality is higher, is bar bar qualification higher. the your So

plants build a on you taking hydroxide commitment you're when So different there. those

I'll it in that non-Australian converter the far necessarily I control tolling Australia as will to development depending them. as assets the I being But regionalize to Asia. quality maintaining increase look more don't product the certainly competitor the the know on interesting where a are of and massive think a it's synthetic and what seeing goes too. of material it but end, doing, in than production, we're sort qualification natural what the be having of I call That will what spodumene Americas. because producer view i.e., an point think to in a for loosely just spodumene an will hard we or demands it's we're contribute to Southeast particularly Chinese

Argentina, different. all of require of all is terms themselves to Argentinean look, technologies. lend systems, in resource They them themselves systems. every all lend think DLE-based Not to pond-based not different I single

the it's that to and they as ultimately it to think end don't up they and of end developing the are mountain. right the in have capabilities would carbonate there hard I incredibly won't on there, deep Some to some they how get of is be that material But it's me them get pocket think And in-house them. in chasing mine are happen coming them well. they of how employees And it so remote know man off but succeed -- out the naive quickly. everything big

as going are by are. very low-cost looking are turn in be developing there now the that way, carbonate into And different I got somewhere a of And in not few they've very so carbonate my just a natural that to it's of experience should market. a into market there them we they. hydroxide, mean producers will carbonate,

is from while different very the to and market. entrants it's in think a those think speak I about of a looks as many new similar sort going ways probably in so And that decade market new to now resources you today,

Operator

our B. with come Pipes last line from Riley Securities. question the And will Lucas of

Unidentified Analyst

million guidance we flat quarter. kind more roughly Should This mostly you about I is here the updated been like next the down to outlook have per expect asking front-weighted? bit of thinking Most a the would new questions two for [ph] Matt earnings little EBITDA cadence question $XXX over that guess are little. The already actually but or was on How a Lucas. my of I quarters? drill addressed a

Paul Graves

as know. you quarterly We guidance, give don’t

Historically, over quarterly guidance. be to you And so business EBITDA has reasonably my quarters. million best to guidance on assumes plus of backdoor not do tended going quarter even clearly, to give a But the $XXX I’m our next basis. the

into You also more do the we whether weather half sometimes tend that’s We’ve some year. have get to been customers. back half half more have [Indiscernible] in as demand production of the Hemisphere imposed we year, back from through whether the year the Southern disruptions on in the the in us August September that or of the in back shutdowns go of it’s and of China in find these

your $XXX for today. So allocation going me But do in two is yes, math next pretty look, for to to be between quarters. the those two on quarters is average quarter difficult right, million need the we

Operator

Q&A to will now comments. the today's This concludes portion Daniel call. of conference call I return the Rosen for closing

Daniel Rosen

you That’s have call to Dennis. today will time the Thanks, additional and address have we any be following all have. the questions Thanks, good evening. everyone call but the a for available we may

Operator

release Corporation conference Thank the concludes XXXX This Livent second you. earnings quarter call.

Livent (LTHM) 3 Aug 222022 Q2 Earnings call transcript