Livent (LTHM, Financial) is an integrated, low-cost lithium miner and processor that was spun out of FMC Corporationin 2018.9 Lithium is an essential component of electric vehicle batteries, is chronically undersupplied and spot Lithium Carbonate continues to hit new highs even as other commodity prices have come down.10 Livent is currently running at roughly breakeven profitability, but our work suggests they will benefit from rising Lithium prices and credible capacity expansion plans. This is an unusual investment for us - we are generally wary of our ability to forecast commodity markets and we have sized the Livent position commensurately.
From Steven Scruggs (Trades, Portfolio)' FPA Queens Road Small Cap Value Fund third-quarter 2022 letter.
