Some have stopped mining due to costs higher than the selling price.
FMG was going to mine it too but had a change of mind when the ore price kept falling.
PLS is expanding as are others and many new miens coming on line.
Over supply issue and why prices will be low for some time.
The only good news is some will go bankrupt due to costs being higher than the selling price which is the good news
as then and only then will the price rise.
I doubt we'll ever see spod higher than $2000US/T again. Simply to many new mines and mine expansions going on.
Must remember sales of all cars not just EV ones are down due to cost of living pressures.
Its called a retail recession the world is basically in so sales are way down no matter what is being sold except food that is.
The Wodgina mine, is undergoing a major expansion beyond its capacity of 250,000 tonnes.
Global lithium production is expected to increase to 170.8 kilotons (kt) in 2023, an increase of 31.3% over 2022, with Australia and Argentina contributing to this growth.
While the restart of operations at the Wodgina lithium mine in June 2022 and the start of the Mount Finniss project in February 2023 will support production in Australia, an expected strong performance from existing mines coupled with the start of new projects will support production in Argentina.
Output in Zimbabwe meanwhile, is expected to grow by 430% in 2023, due to the start of the Zulu project in February 2023, which has an annual production capacity of 15 kilotons. In addition, the expected start of the Arcadia Lithium project in 2023, which has successfully completed trial production of lithium concentrates in March 2023, will further boost production.Sociedad Quimica y Minera de Chile SA, Albemarle, Pilbara Minerals, Mineral Resources, Alkem and Livent are among the key lithium-producing companies in the world, together accounting for 100.4 million tonnes, or 77.2%, of the global lithium production in 2022.
The global lithium industry witnessed significant growth in reserves and resources during the first quarter of 2024, surging to 303.5 million metric tons, a remarkable 52.2% increase compared to the same period in 2021, per S&P Global Commodity Insights.This uptrend aligns with the 2023 trajectory,
where lithium reserves and resources expanded by 36.9 million metric tons. Despite this surge, lithium prices experienced fluctuations. While they soared to historic highs in 2022, reaching $79,650 per metric ton in China, they have since cooled down, resting at $15,250 per metric ton as of April 17, 2024. Nonetheless, experts suggest a prevailing upward trajectory in lithium demand and lithium prices since 2016.
How ever, short-term challenges such as recent price corrections and surpluses in battery metals have been noted.
UBS expects the world’s lithium production to leap 40% this year. Thanks to new production capacities in Zimbabwe and Mali, Africa could play a major role in the surge.
By 2024, Africa is projected to account for 10% of global lithium production, up from 4% in 2023, according to Benchmark Mineral Intelligence. This substantial progress can be largely attributed to China's increasing investments in the continent.
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