Temporary weakness obscures long-term lithium growth

Significance

Prices for lithium carbonate equivalent in China fell even further. The expiration of China’s government’s subsidies for electric vehicles (EVs) triggered the drop. Prices of spodumene -- a key lithium mineral for conversion into electric battery precursors -- have also fallen sharply.

Impacts

• Supplies are rising; Australia’s Core Lithium has begun to ship spodumene ore from its Finniss Project near Darwin, Northern Territory.
• R&D into lithium extraction is rising; Rio Tinto is testing a spodumene concentration process at a demonstration plant in Quebec.
• Many lithium hubs are being planned, including Albemarle's USD180m lithium technology hub at its hometown in Charlotte, North Carolina.
• Self-sufficiency is a key aim; Chinese battery maker Sunwoda plans a 50,000-tonne-per-year USD2.4bn lithium carbonate plant in Jiangxi.