Lithium miner Livent (NYSE:LTHM) noticed its income almost double final 12 months on the again of upper lithium costs.

For 2022, Livent reported income of US$813.2 million and adjusted earnings earlier than curiosity, taxes, depreciation and amortization (EBITDA) of US$366.7 million, over 5 occasions greater than the prior 12 months.

“We count on to generate greater profitability in 2023 as we construct on this efficiency,” stated CEO Paul Graves in a assertion on Tuesday (February 14). “That is pushed by additional anticipated will increase in common realized pricing throughout our lithium merchandise, in addition to greater gross sales volumes with the primary part of our Argentina growth coming on-line throughout the 12 months.”

Final 12 months, lithium costs climbed on the again of sturdy demand from the electrical car (EV) trade. Though the rally has taken a pause, up to now this 12 months costs have remained at excessive ranges.

For 2023, the Philadelphia-based firm initiatives income to be within the vary of US$1,000 million to US$1,100 million, whereas adjusted EBITDA is predicted to be within the vary of US$510 million to US$580 million. In keeping with Livent, this may symbolize progress of roughly 30 % and 50 %, respectively, on the midpoints versus the prior 12 months.

Livent, which operates its lithium enterprise within the Salar del Hombre Muerto in Argentina, additionally stated it stays on monitor to ship all beforehand introduced capability expansions.

The primary 10,000 metric ton lithium carbonate growth in Argentina is “considerably full” and within the means of beginning up, with industrial volumes anticipated in H2 2023. The corporate stated it is usually set so as to add the following 10,000 metric tons of lithium carbonate capability in Argentina by the top of 2023, with first manufacturing from this second growth anticipated in early 2024.

The corporate’s lithium hydroxide capability can also be forecast to extend to 45,000 metric tons by the top of the 12 months. Livent has kicked off building at a 15,000 metric ton lithium hydroxide facility at a brand new location within the province of Zhejiang, China, with first industrial volumes anticipated in 2024.

Moreover, the corporate is qualifying merchandise with prospects at its new 5,000 metric ton lithium hydroxide line in Bessemer Metropolis, North Carolina, and can ship industrial volumes in 2023.

In Quebec, Livent owns 50 % of the Nemaska lithium asset, for which the corporate is anticipating to publish a feasibility examine throughout the first half of 2023. The undertaking is forecast to have nameplate capability of 34,000 metric tons of battery-grade lithium hydroxide and a mine lifetime of over 30 years. Business gross sales are anticipated to start in 2025.

Supported by favorable lithium market circumstances, the corporate’s share value is up greater than 32 % year-on 12 months. Different US, Canadian and Australianlithium shares have additionally seen year-to-date positive factors.

As of 11:30 a.m. EST on Wednesday (February 15), shares of Livent had been buying and selling at US$26.14.

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Securities Disclosure: I, Priscila Barrera, maintain no direct funding curiosity in any firm talked about on this article.