Arcadium Lithium (ASX:LTM), one of the world's largest lithium producers, has raised concerns about its future in Australia, just months after committing to aggressive investment in the region.
The company is now preparing to exit the Australian market in favour of opportunities in South America and Canada.
Formed in January through a $9.7 billion merger of New York-listed Livent and Australia's Allkem, Arcadium (NYSE:ALTM) initially aimed to maintain a significant presence in Western Australia, particularly at the Mt Cattlin site southeast of Perth.
However, the lithium market has faced serious financial pressures, leading to a sharp decline in prices for the essential components of electric vehicle batteries.
Earlier this month, Arcadium announced a suspension of its expansion plans for Mt Cattlin and has now begun to mothball operations.
CEO Paul Graves indicated on Friday that the company may consider selling Mt Cattlin, its sole Australian asset, as lithium prices have dropped to US$720 ($1,057) per tonne.
Graves commented, "If capital was unconstrained, having a big footprint in Canada, Argentina, and Australia would be ideal. But right now, we don’t have a significant presence in Australia."
He emphasised the need to reinvest for shareholders, stating that the company lacks the right assets in Australia to warrant further investment.
"Our primary objective is not to sell Mt Cattlin, but we are open to offers that could extend its operational life," he added.
At the time of reporting, Arcadium Lithium's share price was $3.71.