If SQM are canning new greenfield projects, what hope do any...

If SQM are canning new greenfield projects, what hope do any juniors have. Cheers na may have to rethink their strategy of totally trashing the Lithium price if they want access to future supply. Below from AFR article.


SQM warns of price barrier beyond lithium JV with RinehartPeter Ker and Brad ThompsonAug 23, 2024 – 5.32pmSaveShareGift this articleListen to this article5 minLithium giant SQM says greenfields lithium projects are not viable at current prices, less than four months after it completed the acquisition of one of Australia’s best projects.The Chilean company joined forces with Gina Rinehart’s Hancock Prospecting in a $1.7 billion takeover of ASX-listed Azure Minerals in May, adding to its Australian lithium partnership with Wesfarmers at Mt Holland.Wesfarmers will provide an insight into how the new Mt Holland lithium mine is faring when it hands down full-year results next Thursday. The Azure deal gave Hancock and SQM control of an extremely early stage hard rock lithium deposit called Andover in the Pilbara region, which is already home to the Pilbara Minerals’ Pilgangoora mine and the Wodgina mine owned by Mineral Resources and Albemarle.SQM said on Friday it had spent $US350 million ($520.8 million) on its 50 per cent share of Azure this year and that it would continue with all its previously stated growth projects.But with prices for Australian spodumene fetching $US760 a tonne on August 22, according to S&P Global Platts, SQM signalled it was unlikely to launch into new growth projects any time soon.RELATED QUOTESMINMineral Resources$45.070 -2.82%1 year1 dayAug 23Nov 23Feb 24Aug 2440.00050.00060.00070.00080.000Updated: Aug 25, 2024 – 12.21pm. Data is 20 mins delayed.View MIN related articles Advertisement“Given current price levels, we anticipate that some lithium producers may reduce their output, as many projects, especially greenfield, are not economically viable at these prices,” SQM said on Friday morning.“In our situation, while we continue to advance our previously announced expansions, we are currently re-evaluating specific markets and initiatives that may be less attractive in the near term under these conditions.”