Mr. Martin Perez de Solay reports

ALLKEM CHAIRMAN'S ADDRESS AND CEO SCRIPT

Allkem Ltd. has released its chairman's address.

2023 Allkem annual general meeting

Chairman's address -- Peter Coleman

"Two thousand twenty-three has been a busy year for Allkem and the lithium industry more broadly. Against the backdrop of a downbeat macroeconomy, electrification of transport amongst other clean energy sources is leading the way for a global, decarbonized economy. Electric vehicle sales remain on course to increase approximately 35 per cent year on year to approximately 14-million-unit sales in calendar year 2023. With the help of government targets and policies, China, Europe and the United States are reaching milestones in EV sales and penetration rates.

"EV adoption rates will have the biggest impact on lithium-ion-battery demand and have been forecast to increase by a compounding annual growth rate of over 18 per cent in the next decade. Compared to 2022, lithium demand is expected to increase 3.5 times by 2030 and tenfold by 2050. With such strong growth in demand, there is a looming supply gap for critical minerals required to underpin electrification, particularly lithium, given the long-lead times from exploration to first production. Lithium chemical production is challenging, it requires technical expertise and the product can take on average around 12 months to qualify with customers. We've already started to see delays in industry expansions and new projects coming on-line. According to the International Energy Agency, lithium production in 2022 plus anticipated new supply would only meet 65 per cent of the requirements of a net zero economy in 2030.

"This thematic is playing out as relationships are reinforced securing supply and in consolidation of market participants to enhance scale and market presence. We are seeing opportunistic investors of all forms attribute significant value to upstream resources in a variety of transactions, which in our view reflects fair value rather than equity prices.

"Allkem considers that consolidation in the lithium sector is needed to develop resilience to weaker pricing, increased costs due to interest on debt and general cost growth post-COVID, plus cost increases and scheduled delays in projects under construction or close to a final investment decision. In 2023, the board and management refreshed our long-term strategy and supported diversifying our upstream resource base further, while investing further down the lithium value chain to capture additional benefits and reduce revenue volatility.

"The proposed merger with Livent will combine two global lithium companies and bring together their highly complementary range of assets, growth projects and operating skills across extraction and processing under a vertically integrated business model, with the scale and expertise to meet the rapidly growing demand for lithium chemical products. The merged entity will have a significant portfolio of lithium assets diversified across key geographies, products and customers. Cost synergies and capital expenditure savings, in addition to other anticipated commercial synergies, are expected to be realized from the opportunity to co-develop and derisk future expansion projects and operations. The transaction is logical and highly compelling, with strong strategic rationale and significant synergies that are expected to drive value for Allkem shareholders.

"Anticipated industry growth is significant, and we agree with the robust long-term outlook. However, volatility is a common symptom of high growth markets in their infancy, and today, the lithium market is still maturing. It is maturing away from price discovery, which currently can be driven by sentiment rather than market fundamentals. Additionally, the supply chain is uniquely long and disjointed, and as capacity is being developed, it is common to find a mismatch between downstream demand and upstream supply. Currently, we're in a period of market softness, which has impacted equity pricing, including Allkem's and our peers. Therefore, we don't believe current equity pricing in the lithium industry more broadly currently reflects fair value or the lithium sector growth profile.

"The structural fundamentals of the industry remain robust and are built out of localized supply chains, and capacity is under way. Each country will play an important role in global decarbonization through its policies and incentives, which can influence EV adoption rates, manufacturing, and/or lithium production and processing.

"Canada will play an important role in the buildout of the lithium-ion supply chain in the North American region. It is the home to clean hydro power, world-class deposits and infrastructure and poised to become a critical mineral and battery metal hub, which will also be eligible for the U.S. Inflation Reduction Act.

"Argentina will also continue to play an important role for both the Allkem business and the broader industry. On the political front, the two running candidates in the current election are both very supportive of the lithium industry and have voiced for support of further growth in the industry. Additionally, the governments of the provinces in which we operate control the royalty structure and concessions, and they have already restated their support. In summary, we don't foresee a change in policy in Argentina, and we are confident it will continue to be a key part of our portfolio that we will fund from existing sources, including the IFC project finance facility."

Chief executive officer presentation -- Martin Perez de Solay

"Today, I will recap some of our fiscal 2023 highlights and walk you through our operations and growth plans, including the proposed merger with Livent.

"Looking back at the last financial year, fiscal 2023 revenue and [segment earnings before interest, taxes, depreciation, amortization, impairment, gains from financial instruments, foreign currency (losses)/gains, business combination acquisition costs, non-cash business combination adjustments and share of associate losses] hit new records of $1.2-billion (U.S.) and $910-million (U.S.). Not only did we benefit from high lithium prices, our results were underpinned by strong operational performance. We delivered record production volumes of high-quality lithium carbonate product at Olaroz and successfully turned Mount Cattlin around to achieve record run rates toward the end of the year after experiencing some initial challenges. As a result, we achieved record revenues at both operations while simultaneously advancing our development portfolio.

"Moving onto sustainability, we are very proud to have released our fiscal 2023 sustainability report this morning. Our seventh sustainability report and second report as Allkem demonstrates our commitment to transparency and leading sustainability practices.

"Through our philosophy of shared value with the local stakeholders in which we work with, $54-million (U.S.) flowed to local communities through employment and local supply contracts.

"The growth in demand for lithium is being met with an unprecedented demand for skilled workers in the lithium industry.

"We continued to grow our lithium business to over 1,300 employees during fiscal 2023 with a strong focus on building capacity of our local work force in the remote regions where we operate. Importantly, we are seeing a long-term increase in educational levels. We are very proud that 75 per cent of our local community employees at Olaroz have now completed secondary education. The result from our shared long-term commitment to education was boosted also by creating a culture of shared knowledge and experience between our active operations and across our development pipeline.

"As the number of people working at our sites has increased significantly over the past two years, our commitment to safety is evident in our reduced injury frequency rate.

"Importantly, our people know that they are contributing to part of the net zero solution, bringing quality lithium products into the market, in a sustainable way, that enables global decarbonization.

"Natural capital/net zero

"This year, our teams have identified and evaluated a series of high-impact greenhouse gas mitigation opportunities that we have incorporated in Allkem's first net zero action plan.

"We acknowledge that there is a lot of work still to do; however, by initially focusing on opportunities using proven technology within our direct control, we have made significant progress addressing our Scope 1 and 2 baseline emissions. We will continue to revise our projected emission estimates throughout project planning and approval phases and as new technology becomes available.

"Projects identified in our initial plan have a combined mitigation potential greater than 60 per cent of our group baseline emissions. We have also identified further offset opportunities linked to solar electricity generation capacity at Olaroz that could exceed the remaining baseline.

"The mitigation projects at the most advanced stage include fully commissioning the combined heat and power plant at Olaroz (which will provide an estimated reduction of 7 to 10 per cent of group baseline emissions) and the Sal de Vida power purchase agreement (which has the potential to reduce baseline emissions by a further 17 per cent). These two projects are also estimated to provide continuing annual savings of around $14.5-million (U.S.) by reducing fossil fuel use.

"We have a very strong operational base to leverage from, and we continue to make solid advancements in project execution across the portfolio in line with our growth strategy.

"We recently updated our projects in line with current conditions and confirmed material growth underpinned by our group resource of 40 million tonnes LCE.

"Our capital development costs, operating costs and project schedules have been updated to reflect industry-wide inflationary conditions and in country-specific conditions. Results confirm robust economics and the Tier 1 nature of our assets and growth portfolio.

"Looking back at the last financial year, Mount Cattlin achieved record annual revenue and a robust gross cash margin. We continue this positive momentum into the new financial year with quarterly record production and record revenue. This is in line with our fiscal 2024 production forecast of 210,000 tonnes to 230,000 tonnes.

"Looking beyond current operations, we have confirmed a four- to five-year mine extension to 2027-2028 through open-pit methods. We have recently obtained approval to proceed with the Stage 4 cutback, and mining has commenced.

"We have also recently acquired 80 per cent of Madoonia tenements near Bald Hill covering 440 square kilometres in joint venture with Lithium WA Investments.

"At Olaroz, we achieved record annual production and record annual revenue from lithium carbonate sales in fiscal 2023. Shortly after the financial year, we produced our first wet lithium carbonate cake at Stage 2 and are currently commissioning this expansion to increase the production capacity by 25,000 tonnes per year.

"We are focused on completing commissioning over a 15-month ramp-up period and have guided forecast production of 22,000 to 26,000 tonnes of lithium carbonate production from combined stages 1 and 2 in fiscal 2024.

"At Naraha, we achieved first production of lithium hydroxide in late October, 2022, and sold over 1,300 tonnes in fiscal 2023. Plant performance demonstrates capability to run at 100-per-cent capacity, and battery-grade qualification commenced with customers in July.

"At Sal de Vida, we have completed construction of the first two strings of ponds. The brine distribution system is complete, and the booster station has also been commissioned. The third string of ponds is well advanced, and the carbonation plant construction is under way.

"After a rigorous review of our costs and schedule, we gained a better understanding of our execution plan, the ongoing import challenges and delays experienced in country, and regional productivity factors.

"Substantial mechanical completion, precommissioning and commissioning activities are expected by first half 2025 with first production expected in second half 2025 and ramp-up expected to take one year.

"Stage 2 construction is anticipated to commence upon receipt of applicable permits and substantial mechanical completion of Stage 1 with Stage 2 first production approximately 2.5 to three years thereafter.

"At James Bay, we completed a resource extension drilling program, identified a new high-grade zone and increased our resource by 173 per cent to 110.2 million tonnes of 1.3 per cent Li2O.

"We have installed the hydro power line to site and obtained federal approval for the environmental and social impact assessment.

"Consultations related to provincial approval and the IBA are in the final stages.

"Engineering and procurement have advanced to over-84-per-cent completion, which is very advanced for a project that hasn't commenced construction.

"We have also commenced a 40,000-metre drilling program, which will target further definition of the orebody and possible extensions to mineralization, plus newly identified targets.

"We also released our first project update to Cauchari since 2019, supporting a base case of 25,000-tonne-per-year production capacity coming on-line in second half calendar year 2027. The study demonstrates the value of the project on a stand-alone basis. We do see substantial opportunities to integrate this asset into our Olaroz complex, and these opportunities would likely reduce capital and operating costs. We are investigating this as part of our Olaroz Stage 3 expansion studies.

"Supply chains are building out in newer regions such as North America and Europe as the EV industry is becoming global.

"Not only is global demand growing, it is becoming more technically demanding and continues to innovate its chemistries. Customers are increasingly requiring larger scale and optionality in product offerings as they electrify their fleets.

"Producers who are able to offer this will be best positioned to capture global growth, and this has been part of our company strategy -- that is, to deliver enhanced scale, and product diversity and vertically integrate our resources further into downstream chemicals.

"We continue to focus on our long-term strategy to deliver scale and product flexibility to customers and remain fully committed to the delivery and execution of our growth pipeline. The proposed merger with Livent helps us accelerate our strategy and derisk our growth profile while driving higher vertical integration into the EV value chain.

"Livent is a pure play, fully integrated lithium company with a proven track record of producing lithium compounds. With extensive global capabilities, production track record in its portfolio of projects, applications and technical expertise, long-standing customer relationships, and a favourable sustainability profile, the Livent board believes that Livent is well positioned to capitalize on the accelerating trends of vehicle electrification and renewable energy adoption.

"The combination of Allkem and Livent is expected to create a highly complementary and vertically integrated business model to enhance operational flexibility and reliability, which is expected to result in lower costs and greater value capture across the lithium value chain.

"The combined group will have an attractive geographic footprint and greater capacity to derisk and accelerate growth with a deeper pool of technical, capital and project expertise. We expect the delivery of unique and significant synergies and overall an enhanced value proposition for shareholders, customers, employees and local communities, with a firm commitment to sustainability and responsible growth.

"A stronger financial profile better positions the combined group to deliver growth, and we expect greater liquidity for investors and a more diversified shareholder base.

"Allkem and Livent have agreed that the name of the combined company will be Arcadium Lithium. The merged entity will have a primary listing on the New York Stock Exchange (with Arcadium shares expected to trade on the NYSE) and a foreign exempt listing on the Australian Securities Exchange (with Arcadium CDIs expected to trade on ASX). On completion of the combination, former Allkem shareholders will own approximately 56 per cent of Arcadium securities, and former Livent stockholders will own approximately 44 per cent of the merged entity's securities.

"Transaction update:

• "Arcadium Lithium has filed with the U.S. Securities and Exchange Commission a preliminary registration statement on Form S-4.
• "Allkem's scheme booklet is expected to be sent to shareholders this month. It will include the independent expert report opining on whether the scheme is in the best interest of Allkem shareholders. It will also contain information about the transaction, including the basis for the Allkem board's recommendation.
• "All competition and foreign investment approvals that are required to be obtained prior to completion have been obtained or are expected to be received prior to the proposed closing of the merger.
• "Allkem shareholder meeting to vote on the merger is expected to occur in December, 2023.

"Subject to receipt of all necessary regulatory, shareholder and Australian court approvals, and the satisfaction or waiver of other closing conditions, Allkem and Livent are currently still targeting completion of the transaction around the end of calendar year 2023."

We seek Safe Harbor.