Arcadium Lithium Earnings: Slower Capacity Expansion Pace Should Support Market Recovery

Arcadium's first-quarter results reflected cyclically low lithium prices, partially offset by the company's fixed-price contracts. As a result, Arcadium reported averaged realized lithium carbonate and hydroxide prices of $20,500 per metric ton, above the average index prices of just under $14,000. As Arcadium ramps up its new lithium production capacity, we expect these volumes will be sold at variable prices, most likely on a spot or index-referenced basis. As a result, we expect Arcadium's realized price will increasingly reflect short-term prices as the company progresses through 2024.