ENERGY MINERALS

Lithium prices surge to fresh highs

The rapidly growing electric vehicle sector is pushing lithium prices to fresh highs and propelling demand for graphite.

Staff reporter
 Image: Unsplash.com/Kompan Electric

Image: Unsplash.com/Kompan Electric

Price reporting and research agency Benchmark Mineral Intelligence said in its mid-October update EXW China lithium hydroxide was approaching US$30,000 per tonne, well above the 2018 peak of $25,000/t.

It gained 16.3% in the past fortnight, up almost 253% year-to-date, to an average RMB183,250/t ($28,400/t).

Meanwhile battery-grade carbonate EXW China rose 15.6% over the last two weeks to an average RMB185,000/t ($28,675/t), representing a year-to-date gain of 322%, according to Benchmark.

Strong carbonate demand from cathode manufacturers was keeping the price margin between the chemicals narrow, the agency said.

"Benchmark expects continued volatility in the price relationship between carbonate and hydroxide due to flexibility to interchange between carbonate and hydroxide production at newer conversion facilities in China," it said.

In spodumene, record high spot transactions were likely to incentivise a strong upward revision of contract prices in the fourth quarter, Benchmark has said, a point also made by Pilbara Minerals MD and CEO Ken Brinsden at The Boom in a Room in Western Australia on Friday.

/

Source: Benchmark Mineral Intelligence

Benchmark also said LFP batteries (lithium-ion batteries which use phosphate as a cathode material) accounted for a 58.3% market share of Chinese cell production in September 2021, up 252% year-on-year.

"While debate persists around cathode chemistries, with LFP cathodes gaining ground in China in recent months at the expense of NCM cathodes, these various lithium-ion battery chemistries are all utilising graphite anodes," Fastmarkets Metal Bulletin Research principal consultant Amy Bennett noted.

"In the coming years, exponential growth from the EV sector will propel the industry's graphite requirement far above demand from the traditional consuming sectors, including the refractory industry, which is now the largest graphite-consuming sector."

She said the challenge for the graphite sector centred on the pros and cons of natural versus synthetic graphite.

Natural graphite enjoyed a cost advantage over the "power intensive and environmentally unfriendly" synthetic version, Bennett said, but currently lagged in the key areas of performance and consistency.

She expected both to remain critical materials for anodes in the EV battery industry, and said the ability for supply to rise with demand would help keep prices "less volatile than in other battery raw material markets and will protect the industry from substitution by competing anode technologies in the longer term".

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.

editions

Mining Journal Intelligence Global Leadership Report 2023: Social licence

Gain insights into social licence trends and best practices from interviews with 20+ top mining company executives and an industrywide survey.