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Livent announces lithium supply agreement with BMW, expects revenue growth in 2021

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(Kitco News) - Livent (NYSE: LTHM), the producer and manufacturer of lithium and lithium compounds, reported yesterday that its Q4 2020 revenue was $82.2 million, a sequential improvement over the third quarter of 13% driven by higher volumes sold and better realized pricing. 

For the full-year 2020, Livent reported revenue of $288.2 million and GAAP net loss of $19 million, or a loss of 13 cents per diluted share. Full-year adjusted EBITDA was $22.3 million and adjusted loss per share was 5 cents per diluted share.

In addition, Livent announced a multi-year supply agreement with BMW Group to deliver both lithium hydroxide and carbonate. Livent has already begun delivering product for qualification and commercial volumes are expected to begin in 2022.

"This key partnership with the BMW Group will help secure long-term lithium supply for its electric vehicle fleet," said President and CEO Paul Graves. "Multi-year, multi-application agreements with premier OEMs, like BMW Group, reflect Livent's position as a global leader in the lithium industry with a differentiated product offering, proven track record and sustainability profile," added Graves.

For the full-year 2021, Livent expects revenue to be in the range of $335 million to $365 million and adjusted EBITDA to be in the range of $40 million to $60 million, based on higher volumes and slightly lower average pricing across its lithium products. Livent also expects lower costs in 2021, driven in part by reduced third-party carbonate usage.

"We are encouraged by the strong growth in electric vehicle sales in 2020, setting record highs despite significant COVID-19 related disruption to global supply chains and the end-consumer," continued Graves. "We expect the positive lithium market conditions that started to appear in the fourth quarter will continue in 2021," concluded Graves.

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