not good outlook Lithium mine closures just ‘tip of the...

not good outlook
Lithium mine closures just ‘tip of the iceberg’Alex GluyasAug 26, 2024 – 2.17pmThe lithium sector is facing a wave of mine closures as prices for the battery material continue to decline despite some companies already delaying future projects.UBS slashed its lithium price forecasts for the 2025 and 2026 calendar year by up to 23 per cent on Monday as it cautioned that not enough supply was being deferred, and global demand for electric vehicles was softeningThis is despite a growing list of companies already curtailing production as the slump in prices intensifies. Carbonate prices in China have plunged 25 per cent this year to $US9000 a tonne, while spodumene is down 19 per cent to $US770 a tonne, the lowest since July 2021.Core Lithium has already suspended mining at its Northern Territory-based Finniss project, while Arcadium Lithium paused its investment at James Bay in Canada and is considering idling its Mt Cattlin mine in Western Australia. Piedmont Lithium delayed its US Carolina project by two years, while Albemarle scaled back operations for its Kemerton hydroxide refinery.“While we don’t observe any large-scale curtailments yet, it is clear that the stress of low prices needs to drive production curtailment and delay/deferral of growth projects,” said UBS analyst Lachlan