LITHIUM

Production Domestic lithium production data were withheld in 2023 to avoid disclosing company proprietary data. Albemarle Corp. produced lithium compounds from domestic brine resources near Silver Peak, NV. U.S. Magnesium LLC produced lithium carbonate from a stockpile of cell salt residue accumulated over the course of 50 years from the production of magnesium in Rowley, UT. Estimated world lithium production (excluding production in the United States) was about 180 kt of lithium content recovered from minerals and brines, a 23 percent increase from 2022. Seven mineral operations in Australia, one mineral tailings operation in Brazil, two brine operations each in Argentina and Chile, two mineral operations in Canada, five mineral and four brine operations in China, and one mineral operation in Zimbabwe accounted for most of the world lithium production. Additionally, smaller operations in Argentina, Australia, Brazil, China, Portugal, the United Staes and Zimbabwe also contributed to world lithium production. In 2023, Australia was the largest lithium producer, with an estimated output of 86 kt. Chile and China ranked second and third, producing 44 kt and 33 kt, respectively. Consumption The U.S. Geological Survey (USGS) reported world lithium consumption was about 180 kt of lithium contained in minerals and compounds, a 27 percent increase from the revised consumption figure of 142 kt in 2022, owing to strong demand from the lithium-ion battery market. U.S. consumption data were withheld to avoid disclosing company proprietary data. Estimated global distribution for lithium used in 2023 was batteries, 87 percent; ceramics and glass, 4 percent; lubricating greases, 2 percent; continuous casting mold flux powders, air treatment, and medical, 1 percent each; and other uses, 4 percent. Lithium’s important properties include low density, high specific heat, low coefficient of thermal expansion, high electrochemical potential and excellent thermal conductivity. Price According to the USGS, spot lithium carbonate prices in China decreased from approximately $76,000/t in January 2023 to about $23,000/t in November 2023. For fixed contracts, the annual average U.S. lithium carbonate price was $46,000/t in 2023, a decrease of 32 percent from 2022. Spot lithium hydroxide prices in China (cost, insurance, freight China) decreased from approximately $81,500/t in January to about $22,500/t in November. Spodumene (6 percent lithium oxide) prices in Australia (free on board) decreased from approximately $6,000/t in January to about $2,500/t in November. Concerns over short-term lithium oversupply, the expiration of the Chinese government’s decade-long program for subsidies for electric-vehicle (EV) purchases, and weakerthan- expected EV sales worldwide caused the considerable decline in lithium price in 2023. Foreign trade According to the USGS, U.S. lithium imports for consumption in 2023 were 3.4 kt, an approximately 4 percent increase compared to 2022. Import sources were Argentina (51 percent), Chile (43 percent), China (3 percent), Russia (2 percent) and others (1 percent). The United States exported 2.3 kt of lithium. Recent developments In November 2023, ExxonMobil commenced drilling its first-ever lithium well in Arkansas, which has significant quantities of lithium deposits. Initial production is targeted by 2027 and enough lithium production is planned to cater to battery manufacturing for one million electric vehicles annually by 2030. In September 2023, Gotion High-tech Co Ltd., a Chinese battery manufacturer, announced that it would build a lithium battery manufacturing plant in Manteno, IL in the United States, entailing an investment of $2 billion. In the same month, the U.S. Office of the Assistant Secretary for Industrial Base Policy signed an agreement with Albemarle for the latter’s lithium mining and production expansion plans. The budget for the expansion was around $90 million. Albemarle plans to reopen its Kings Mountain, NC mine between 2025 and 2030, which will help increase the domestic production of lithium. Outlook Lithium prices soared in 2022 but came crashing back down in 2023. In the long term, governments will strive to reduce emissions, and there will be support for EVs, which, in turn, will drive the demand for lithium. In 2024, some lithium miners have reduced their production guidance and delayed expansion plans in response to the prevailing market conditions. Fastmarkets projects that the global lithium supply will increase by 30 percent in 2024. The firm forecasts a relatively balanced market in 2024 and thus expects the price to stay in its current range. EVs are the primary driver of demand, making the lithium market strongly dependent on EV sales and sentiment. High interest rates, along with limited driving ranges, and frequent and expensive repairs have mellowed interest in EV purchases. However, interest rates are projected to pull back in 2024 and 2025, which may prompt a flip in EV demand. The U.S. Inflation Reduction Act, which includes funding and incentives geared at helping companies involved in the clean energy transition build a domestic supply chain, has been a major driver for lithium companies in North America. Last September, S&P Global released a study that found the act has accelerated demand for critical metals, and projections for lithium demand in 2035 are 15 percent higher than before its introduction.

LITHIUM

Authored by:
Debashis Das P. E.

To view the past issues of the UCA magazine you must be a member of SME/UCA.

Get your SME Foundation VIP Access Conference Pass to MINEXCHANGE 2027

“Check the box” and help support the SME Foundation

The Art and Science of the Flowsheet

Get your SME Foundation VIP Access Conference Pass to MINEXCHANGE 2027

“Check the box” and help support the SME Foundation

The Art and Science of the Flowsheet

To view the past issues of the UCA magazine you must be a member of SME/UCA.

LIME

MANGANESE

Related Articles

Get your SME Foundation VIP Access Conference Pass to MINEXCHANGE 2027

“Check the box” and help support the SME Foundation

The Art and Science of the Flowsheet

UCA Division officer nominations

Get your SME Foundation VIP Access Conference Pass to MINEXCHANGE 2027

“Check the box” and help support the SME Foundation

The Art and Science of the Flowsheet

Get your SME Foundation VIP Access Conference Pass to MINEXCHANGE 2027

“Check the box” and help support the SME Foundation

The Art and Science of the Flowsheet

Use Single Sign On