The merger of Allkem and Livent to create a New York-listed $US10.6 billion ($15.7 billion) global force in lithium is ideally positioned to capitalise on soaring demand for the essential metal.

Lithium is a key ingredient in the batteries that power electric vehicles, and is used in energy storage applications. With the world on a renewable course, the deal is the latest in a string of transactions cashing in on the energy transition.