Lithium, page-810

Spot Prices

IM is currently tracking the Chinese spot market for lithium carbonate (99-99.5% Li₂CO₃, CIF China) at $22-25/kg and lithium hydroxide (56.5-57.5% LiOH, CIF China) at $21-25/kg.

Call it $23,500 per ton for Li2CO3 and $23000 per ton for LiOH

Spodumene producer costs (8 tons at $200) ~ $1600 / T
Converter costs ~$1500 / T

Gives $20400 - $19900 of margin to split between producer and convertor

At 50/50 margin split = $1475 - $1273 per ton equivalent sell price for Spodumene concentrate

Contract Prices

IM is currently tracking the Q3 contract price for lithium carbonate (99.99.5% Li₂CO₃, del. US) at $10-15/kg and lithium hydroxide (56.5-57.5 LiOH, del. US) at $15-20/kg.

Call it $12500 per ton for Li2CO3 and $17500 per ton for LiOH

Spodumene producer costs (8 tons at $200) ~ $1600 / T
Converter costs ~$1500 / T

Gives $9400 - $14400 of margin to split between producer and convertor

At 50/50 margin split = $800 - $1100 per ton equivalent sell price for Spodumene concentrate

Gives you an idea of the earning power the current PLS BOA can give

Note that contract rates don't appear to be finalised so not sure if IM can be trusted, just an indication to me that the spot price madness is setting the stage for higher contract pricing for 2017