Lithium miner Livent said on Tuesday its proposed $10.6 billion merger with Australia's Allkem had received all the required pre-closing regulatory approvals.

The deal is expected to close by Jan. 4 if Allkem shareholders vote in its favor at a Dec. 19 meeting.

The new company, to be called Arcadium Lithium, will be the world's third-biggest producer of the key metal used in electric vehicle batteries, behind U.S.-based Albemarle and Chile's SQM.

Under the deal, Allkem shareholders will get one share in Arcadium Lithium for each of their shares and the company will ultimately own 56% of the new firm.

Livent shareholders will get 2.406 shares in the new firm for each existing share, with Livent CEO Paul Graves taking the top job.

While a basket of prices for lithium has dropped more than 60% this year, the world's largest lithium producers say they remain bullish on long-term demand for the battery material.

(Reporting by Seher Dareen in Bengaluru; Editing by Devika Syamnath)