Kevin McCarthy: Okay, thank you for that.
Paul Graves: To be clear Kevin, it’s almost certainly going to be higher in 2024 than in 2023.
Kevin McCarthy: Very good. And then I wanted to ask about your capital expenditure plans or the profile beyond this year. Presumably you have some spend rolling off in Argentina and you’ve quantified some of the cash that you expect to expand for Nemaska. If you kind of net all that out, do you think your 2024 budget would be likely to trend flat, up or down versus this year’s range?
Paul Graves: Well, the first thing I would say is I feel like spending trends up in Argentina. I just case were placed by another set of spending. We have at least 2 or 3 more phases to build in Argentina. So yes, it’s 1 phase ends and another 1 rolls in. And while the next phases tend to be more capital efficient because they take advantage of the infrastructure, they’re going to be bigger. So the capital need is still not massively diminished. Excluding Nemaska, I think we expect capital requirements in next year to be sort of largely flat with this year and probably the same going into 2025 as well. And then there’ll be Nemaska’s spending on top of that. So I think in aggregate, we’ll see the capital spend across both Argentina and Nemaska together, probably slightly higher than we saw in 2022 and 2023. Now that could change if we had more lithium hydroxide plants, which is entirely possible.
Kevin McCarthy: Okay, I appreciate the color. Thanks, Paul.
Operator: Your next question comes from the line of Aleksey Yefremov with Keybanc Capital Markets. Your line is open.
Aleksey Yefremov: Thanks. Good afternoon, everyone. Paul, you made a comment that there’s probably more rationale behind the Allkem deal now over the last few months. Could you elaborate what you meant by that comment?
Paul Graves: Yes, look, I just think the needs for us to be large and credible with customers has definitely been reaffirmed by our conversations with customers and how they are looking for more reliable supply and supportive of anything that helps them have more choices, more options, more material available to them to support their business models. And I think we can also start to see, as we start to dig in a little more closely, opportunities across our asset base to integrate them more closely, not just the capital, but also integrate the operations and the commercial strategy across a wider, more dispersed set of products that we can produce and offer. So I think it’s like anything. You sort of see the logic. You do your arm lift dance. Once you can actually start to do a lot more detailed planning, it’s starting to play out and show us that there’s really quite a lot there to be shopped for and to benefit from as we put these two companies together.
Aleksey Yefremov: Okay. Makes sense. Thank you. And then on your first 10-kiloton expansion in Argentina, should we assume it’s running close to full rates next year or there’s a longer ramp?
Paul Graves: No, no. It’s a reasonably quick ramp, particularly in the summertime down there. So you should assume that that’s running at full rates next year, yes.
Aleksey Yefremov: Got it. Thanks a lot.
Operator: Your next question comes from the line of Joel Jackson with BMO Capital Markets. Your line is open.
Joel Jackson: Hi. Good afternoon. Paul, a couple of questions. Just following up on the S4 question, some of the projections that you put into that. And I understand the presentation for certain purposes. I just wanted to ask about the 2024 projection for Livent. I think it was about $1 billion EBITDA. Could you just tell me, is the rationale there to show like the best case scenario? You gave the pricing deck. So we know that is — I think it was ’25 hydroxide and ’22 carbon, if I recall. But is that where you assume all your capacities running full out, including your current hydroxide expansion and your carbonate expansion in Argentina, everything ramps up day one, boom, 100% day one. Is it like the most idealized production scenario. Could you just give some sense of what that $1 billion means?
