Livent (NYSE: LTHM) stock was already on a roll after it announced bumper numbers earlier this month. Livent is now merging with another lithium company, and the combined entity will be worth $10 billion and own one of the world's largest lithium deposit bases, positioning itself as a leading battery-grade lithium supplier.

The merger announcement, coupled with a rebound in lithium prices, sent shares of Livent higher this week: The lithium stock had clocked 11.7% gains at its highest point during the week as of 10 a.m. ET Friday, according to data provided by S&P Global Market Intelligence.

On May 10, Livent announced that it'll merge with Allkem to create a "leading global lithium chemicals producer." After the all-stock deal closes by the end of this year, Allkem will own a 56% stake, and Livent will own the remaining in the combined company, referred to as NewCo for now.

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Source Fool.com