Arcadium Lithium, the result of a recent mega-merger combining two of the world’s biggest lithium companies, is opening the door to investors who could speed up development of its second Quebec project, CEO Paul Graves said. Ontario could be in the running for a future factory, he added, as the company tries to more than double its sales volumes by 2028.

Lithium, a key component of electric-vehicle batteries, has gone through a boom-bust cycle that since the start of the year has pushed Arcadium’s stock down about 65 per cent, as automakers and battery companies delay their projects. The company co-owns Nemaska Lithium with Investissement Québec, and has long-term deals with Tesla, Toyota, Ford, BMW, Panasonic and General Motors, among others. 

Despite the downturn, Graves said the company is confident of its long-term prospects as it considers future Canadian deals. As executives and key shareholders visit Becancour, Que., this weekend, here’s what they’ll be watching. 

Don’t call it a comeback: Arcadium cut about 11 per cent of its workforce in the first quarter, and announced last month it was pausing investment for its second Quebec project, Galaxy, in the James Bay area, citing a slowdown in demand. At that time the company announced it was seeking a capital partner for the Galaxy project. 

Though it pushed the Galaxy project timeline a year or two, Graves said the move was not a restructuring. The merger of Livent and Allkem that created Arcadium, he said, resulted in redundancies that drove the cuts. 

“We try to look past the short-term negativity that we see out there,” he said. “We’re pretty bullish that in the long run this trend toward electrification is unstoppable.” 

Canadian ambitions: Even as it pauses Galaxy, the company is forging ahead with its Nemaska project. Graves said it would be interested in someday buying back some of Investissement Québec’s stake in Nemaska for more ownership and control, or bringing on new investors. 

“We will absolutely run Nemaska,” he said. “We’re comfortable with it because there’s a lot of demand for lithium that is produced outside China.” 

The firm also acquired an Ontario lithium-metal technology startup, Li-Metal, in August, including its pilot factory in the province. Should the Galaxy project restart with fresh funding, Graves said, the company would consider Ontario among potential locations for a processing plant. 

The takeaway: The federal government estimates Canada will need five lithium mines, five lithium hydroxide plants and two lithium carbonate plants to support the heavily subsidized battery gigafactories planned by Volkswagen, Northvolt, Honda and Stellantis. Graves praised Canada’s free-trade relationships, but said the country must keep building up skilled talent, adding infrastructure in mining hot spots and aligning project approvals between levels of government. 

Lithium might be a proxy for other trends, like EVs or geopolitical tensions. But at its heart, Graves said, it’s “a complicated chemical product that requires long-term investments and commitments.”