Sure, I work for Albermarle. Copy and paste from our resources:
Economy of scale is important in lithium brine extraction mining because it can reduce the cost of production and increase operational efficiency. According to a study published in Mineral Economics, larger scale lithium brine extraction operations were able to produce a higher volume of lithium at lower unit costs than those with smaller scale operations (Simmons & Fitz-Gerald, 2017). Additionally, access to economies of scale typically gave larger operations a competitive advantage over their smaller counterparts (Simmons & Fitz-Gerald, 2017). Another study published in Renewable and Sustainable Energy Reviews found that larger scale lithium brine operations had significant cost savings due to the reduced cost of labor, raw materials, and production equipment (Vera et al., 2019). Furthermore, the ability to scale operations up or down allows businesses to adjust operations to maximize efficiency and profitability (Vera et al., 2019).
AGY lacks economy of scale.
References:
Simmons, M.B. & Fitz-Gerald, J. (2017). ECONOMICS OF LITHIUM EXTRACTION FROM BRINES, MINERAL ECONOMICS, 30(2), 175-184.
Vera, P., Romero, F., Solis, H., Rojas, J., & Silvera, K. (2019). Techno-economic Analysis of the Production of Lithium from Brine Resources, RENEWABLE AND SUSTAINABLE ENERGY REVIEWS, 107, 14–23.
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