Arcadium Lithium posted a fourth-quarter loss on Thursday, impacted by declining lithium prices, which have dropped over 80% since peaking in November 2022 due to oversupply and slowing EV adoption.
The company has agreed to a $6.7-billion acquisition by Rio Tinto, which shareholders approved in January. The deal is expected to close by March 6.
Following the acquisition, Rio Tinto plans to establish a standalone lithium division, which will oversee the $2.5-billion Rincon project in Argentina but exclude the controversial Jadar lithium project in Serbia.
Arcadium reported a net loss of $14.2 million, or 1 cent per share, for the quarter, compared to a net income of $37.7 million, or 9 cents per share, in the same period last year.
Revenue reached $289 million, exceeding analysts’ expectations of $269.06 million. For the full year, revenue totaled $1 billion, up from approximately $885 million in 2023, surpassing forecasts of $986.6 million.
Lithium carbonate and hydroxide sales in 2024 were slightly lower year-over-year, impacted by weaker spodumene sales due to reduced production at the Mt. Cattlin mine in Western Australia.
Arcadium previously announced that it would place Mt. Cattlin on care and maintenance by mid-2025 in response to market conditions.
The company reported adjusted earnings per share of 1 cent, aligning with analyst expectations, according to LSEG data.
