ENERGY MINERALS

Lithium prices steady at record highs

Lithium prices remain at record highs but the rally in China slowed in the past fortnight as buyers and producers hold out on trading to focus on contract negotiations for 2022, according to Benchmark Mineral Intelligence.

 Pilbara Minerals is recommissioning its Ngungaju spodumene plant in Western Australia

Pilbara Minerals is recommissioning its Ngungaju spodumene plant in Western Australia

It said EXW China battery-grade lithium carbonate pricing rose 2.1% in the first two weeks of November to an average RMB195,250 per tonne (US$30,650/t), representing a 345.9% rise year-to-date.

Lithium hydroxide EXW China crept up 0.5% to an average RMB190,000/t (US$29,825/t), a 265.7% rise this year.

The prices recently surpassed previous peaks set in 2018, according to Benchmark data, as supply battles to keep up with demand.

Fellow price-tracker Fastmarkets index manager Peter Hannah said earlier this month the market was not merely at the precipice of a supply deficit but might have already lost its footing.

The improving conditions for producers have prompted actions including ASX-listed Pilbara Minerals to speed up the recommissioning of its neighbouring Ngungaju spodumene plant in Western Australia, while Albemarle and Mineral Resources are restarting their hard rock Wodgina mine

The spodumene market has seen record prices achieved by Pilbara Minerals in its three digital auctions so far, with a peak of US$2,350/dmt offered in October for a future shipment.

"Contacts reported to Benchmark in early November that some non-integrated spodumene converters had begun to run out of feedstock inventory, forcing some to switch to a tolling business model, indicating potential for price rally reboot if fears over availability reignite," the price reporting and research firm said.

"Carbonate and hydroxide continue to trade in a similar price range given exceptional domestic Chinese demand for LFP cathode material over the course of 2021, a price dynamic that could maintain on the back of indications from key automakers such as Tesla, Ford, Volkswagen and Mercedes that base range models will utilise LFP-based cells." 

Benchmark said downstream demand persisted and China's electric vehicle sales broke records for the fifth consecutive month, approaching 400,000 units in October. 

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

editions

Mining Journal Intelligence Global Leadership Report 2024: Net Zero

Gain insights into decarbonisation trends and strategies from interviews with 20+ top mining executives and experts plus an industrywide survey.

editions

Mining Journal Intelligence Project Pipeline Handbook 2024

View our 50 top mining projects, handpicked using a unique, objective selection process from a database of 450+ global assets.

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.