Global Lithium Prices Slide Amidst Weak Demand, but Industry Remains Bullish
Global lithium prices are experiencing a downward trend due to weak demand in the market. Fastmarkets’ North Asian lithium prices, which reflect spot sales across China, Japan, and Korea, have been declining. Currently, lithium is trading around US$22,000/t according to Fastmarkets. This decrease is mainly driven by lower prices in China, where lithium hydroxide is trading at around US$20,800/t and lithium carbonate at US$22,000/t.
The bearish sentiment and thin demand in China have led to a decrease in lithium carbonate prices. Meanwhile, East Asian lithium prices have also declined due to weak demand and consumer caution. European and US lithium prices are following this downtrend as well.
Despite these challenging market conditions, major global lithium producers remain optimistic about the long-term prospects of the electric vehicle (EV) industry. Albemarle, Pilbara Minerals, Livent, and others believe that the current difficulties are merely temporary setbacks. They see the obstacles as road bumps rather than determinants of the long-term growth of the industry.
Eric Norris, head of Albemarle’s Energy Storage division, emphasized that the current situation should not overshadow the potential growth of the industry. He assured investors that the demand for lithium remains strong. Paul Graves, CEO of Livent, echoed similar sentiments and stated that the constraint on demand is the limited supply of lithium.
Industry players such as Mineral Resources and IGO also view the current market conditions as a rebalancing of supply chains and a near-term issue. They believe that the industry will eventually recover and continue its growth trajectory.
Amidst these market challenges, GreenTech is making significant progress in its exploration programs at the Osborne Joint Venture (JV) in Western Australia’s Pilbara region. GreenTech, in partnership with Artemis Resources, is conducting a 1,500m diamond drilling program to uncover the full potential of its ground.
In addition, WC8, a Pilbara-based lithium project near Port Hedland, has delivered exceptional results, boosting its prospects. New assay results from the Leia pegmatite in the project’s Central Cluster indicate the presence of a Tier-1 lithium deposit. The pegmatite is over 1.65km long, 180m wide, and has been intersected to a depth of more than 350m. The company is eagerly awaiting results from further drilling.
Furthermore, the Australian Securities Exchange (ASX) lithium mergers and acquisitions scene remains active. Mineral Resources recently increased its stake in WC8, while First Lithium’s drilling program at the Blakala prospect continues to yield positive results.
Pioneer Lithium has expanded its portfolio with the acquisition of a greenfields property in northwest Ontario, positioning itself strategically between other lithium projects in the area. QX Resources has also reported significant lithium grades in the Pilbara region, with rock chip samples returning grades of up to 3.8% lithium dioxide at Turner River.
Finally, Arizona Lithium has commenced pad construction for its proposed direct lithium extraction facility at the Prairie project in Canada’s Saskatchewan province.
Although global lithium prices face downward pressure due to weak demand, industry players maintain a positive outlook for the long-term growth of the EV sector. The industry’s current challenges are seen as temporary, and lithium producers continue to express confidence in the future demand for their products.
