Livent Corporation LTHM shares are setting new 52-week highs Friday after announcing earnings, a new joint venture and an expanded partnership with Tesla Inc. TSLA.
Q3 Earnings: Livent reported third-quarter revenue of $72.6 million. This was down from the prior year’s period, but up from the second quarter.
The company said it was a difficult market for the lithium industry in the third quarter.
Livent expects an increase in volumes in the fourth quarter, citing higher year-over-year sales of electric vehicles.
Related Link: Analyzing Livent’s Unusual Options Activity
Joint Venture: Livent and partner The Pallinghurst Group will own 50% of New Nemaska, a joint venture for the business and certain assets of the former Nemaska Lithium. The other 50% will be owned by Investissement Quebec.
“New Nemaska is one of the most attractive lithium projects in the world and is ideally positioned to meet the growing demand for a reliable high-grade supply of lithium chemicals in North America and Europe,” said the company.
Tesla Partnership: Livent also announced it has extended its multi-year lithium hydroxide supply agreement with Tesla. The deal was extended through 2021, with the new agreement a commitment “for higher volumes than in 2020.”
“Livent continues to discuss the framework for a long-term supply partnership with Tesla beyond 2021.”
Benzinga’s Take: Livent is a pure-play lithium supplier that was spun out of FMC Corporation FMC. The extension of the Tesla deal is a good sign and an extension beyond 2021 could be a major catalyst.
Shares of Piedmont Lithium Limited PLL surged on a Tesla supply deal. Shares of Piedmont are up 194% year-to-date.
Shares of Livent hit a new 52-week high of $13.59 on Friday. Shares are trading 11% higher to $13.10 at publication time.
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