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25% price increase June quarter - Sydney Morning Herald today

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    Lithium producer Orocobre set to ride electric car boom

    • Darren Gray
    Lithium producer Orocobre predicts it will be paid about 25 per cent more for lithium in the June half than in the December half as the demand for electric vehicles accelerates.
    The company reported record half year revenue of $US63.1 million for the December half on Friday.

    An electric vehicle recharges in London. Photo: Simon Dawson
    Orocobre remains bullish about the long-term demand for lithium, a key ingredient in electric batteries used in the fast-growing electric vehicle segment.
    The company, whose Olaroz facility in Argentina is considered one of the lowest cost producers of lithium carbonate in the world, also reported a significant jump on the prices it received per tonne in the December half, revealing an average price of $US11,145 per tonne, up 24.3 per cent on the first half of fiscal 2017.
    The company, which recently signed a deal with the Toyota group’s trading arm Toyota Tsusho Corporation, hopes to cash in on the global rise of electric vehicles.
    Under a deal announced in January, Toyota Tsusho will take a 15 per cent stake in the Orocobre business. The agreement will help Orocobre pursue plans to more than double the production capacity of Olaroz, to more than 42,000 tonnes per year.

    Orocobre’s managing director, Richard Seville, said Orocobre was expecting to receive prices about 25 per cent higher this half than in the December half.
    “There’s a shortage of supply at the moment and security of supply is more important than price. And we’ve actually seen strong price rises over these last two to three years. So this is a continuation of that,” he said.
 
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