By focusing on building a leading position in value-added products, we have meaningfully outperformed in pricing terms, but just as important, we’ve been able to reduce the volatility of our realized pricing year-over-year, creating greater predictability of earnings, which is a key benefit when assessing the attractiveness of investing in multi-year lithium projects. You can see from this data that when market prices were at their lowest in the 2019 to ’21 period, Livent had its greatest outperformance in terms of both pricing levels and predictability. While the large and rapid run-up in market prices in 2022 meant we underperformed in terms of pricing growth, as pricing recedes from these historic highs in 2023, we’ve restored our price premium and expect it to grow further still by the end of the year.
It is with this same perspective that Livent will look to operate its business moving forward and how the company ultimately believes it will drive the most value for shareholders. With this said, I want to highlight some of the key tailwinds behind our business and what you can expect from Livent as we move through 2024. First, Livent will be producing and selling meaningfully higher volumes to customers next year, potentially 50% more than in 2023. This is the result of multiple years of expansionary investment and this trend of increasing year-over-year volumes will continue for the next few years. This also means that we will be generating higher cash flow in 2024 under a wide range of different price scenarios, including one where market prices remain at today’s level throughout 2024 and we intend to continue to use this cash flow to fund multiple highly attractive capacity expansion opportunities available to us while maintaining a healthy balance sheet.
Livent also chose to lock in some pricing for the business, which will benefit us in 2024, regardless of future market price movement. This was done as we continue to reset lower price contracts that were entered into with long-term customers prior to the run-up in lithium prices that began around 2021. Agreeing to fixed prices just for next year gives us some additional confidence of delivering a year-over-year price increase on a meaningful portion of our volumes. You should expect Livent to continue bringing greater clarity to his business through its commercial strategy, its diverse product offering, and leading cost profile. Livent’s customers value the high quality of our products and our growth capabilities, and are willing to enter in long-term agreements with firm volumes and other forms of commitment to support us.
In order to be a reliable partner, we will structure these contracts to give us confidence to invest in expansion while also retaining the ability to take advantage of market opportunities when available. Livent also benefits from the diversification brought by its other lithium specialties products, including butyllithium. In addition to serving a variety of attractive end markets outside of energy storage, the fact that price adjustments in these products are typically based on movements in key underlying input costs means that there tends to be more stability in the profit margins of these businesses. Despite the recent decline in market prices, Livent suggests that EBITDA margin continues to be about 50% today. This is a result of the company’s best-in-class, low-cost resource base, and its operating cost discipline, which supports profitability through different market cycles and it is this discipline around pricing and costs that gives us confidence in our ability to continue to fund the investment in our world-class resources from internally generated funds.
Now, everything we just discussed refers to Livent alone, but of course, we are nearing the closing of our merger with Allkem to create a leading global lithium chemicals producer. The merger will immediately increase our global scale and growth profile, further diversify our asset base and product offering, and improve our vertically integrated footprint. You’ve seen our shared long-term vision for the new company before on Slide 10. While some of these strengths will take time to fully realize, we expect to see real tangible benefits in 2024, including improved product flows between our production assets and lower combined operating costs as we work toward run rate synergies of $125 million and one-time capital savings of $200 million. We will, of course, have more to share with you early next year after the close, but we remain excited as ever about the opportunities this merger will bring to all shareholders.
I want to conclude on Slide 11 by highlighting some of the key merger-related milestones since our last earnings call, as well as what to expect ahead of our targeted closing. Livent and Allkem have received all required pre-closing regulatory approvals for the transaction, with the exception of foreign investment screening in Australia. Approvals received include antitrust in Canada, China, Japan, South Korea and the US, as well as completion of investment screenings in the UK and the US. Additionally, we have announced that the name of the combined new company will be Arcadium Lithium. Upon closing, Arcadium Lithium is expected to trade on the New York Stock Exchange under the ticker ALTM, and CDIs, or chest depository interests, are expected to be quoted on the ASX under the ticker LTM.
