MELBOURNE, Aug 25 (Reuters) - Australian lithium producer
Orocobre Ltd on Wednesday posted a 10% jump in annual
revenue, boosted by higher demand from electric vehicle makers,
and said it had completed a $1.4 billion merger with Galaxy
Prices of lithium, a key ingredient used in electric vehicle
batteries, have surged over the past year amid a global push to
cut carbon emissions and move to cleaner modes of
The company's acquisition of Galaxy Resources, announced in
April, will create the world's fifth most valuable producer of
lithium. The combined entity will be renamed Allkem Ltd.
"The merger consolidates the combined group's position in
Argentina and provides an opportunty to build on a strong
platform there and in our other key jurisdictions globally,
including Australia, Japan and North America," Orocobre chief
executive Martín Pérez de Solay said.
Galaxy was expected to be delisted from Aug. 26.
Orocobre, which operates the Olaroz Lithium Facility in
northern Argentina, said its annual revenue was $84.8 million
for the year ended June, compared with $77.1 million a year
However, its after-tax loss widened to $89.5 million from
$67.2 million, hurt by a $74.9 million charge due to a change in
the Argentine tax rate.
Orocobre also said that the second-stage expansion of the
Olaroz Lithium Facility is expected to be completed in fiscal
(Reporting by Melanie Burton in Melbourne and Harish Sridharan
in Bengaluru; editing by Uttaresh.V and Richard Pullin)