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Tianqi Lithium swings to a loss

Bloomberg

A major Chinese lithium producer has swung to its first half-year loss since 2020, hit by the battery material’s massive price slump.
Tianqi Lithium posted a net loss of 5.21 billion yuan ($1.08 billion) for the first six months, from a profit of 6.45 billion yuan a year earlier, according to a statement late Friday.
A glut of supply has overwhelmed slower-than-expected demand growth from electric-vehicle makers, driving spot carbonate and spodumene prices to three-year lows. The drawn-out slump has squeezed producers’ margins, forcing some to rethink expansion plans, reduce spending, or shutter facilities to weather the downturn.
Tianqi said it has changed to a monthly pricing formula from quarterly for spodumene concentrate from its Talison project in Australia. The adjustment, introduced in January, was aimed at reducing “the adverse impact” from the discrepancy between the pricing cycle and the market spot price.
The company, which has a footprint spanning China, Australia and Chile, said it sees market fundamentals improving within the next few years. It will continue to work with top miners to explore new resource opportunities, while speeding up development of domestic resources, it added.