Australia’s lithium mining boom hit by sagging prices

Original Report: www.bbc.com(full story)

Australia’s lithium industry is experiencing a downturn due to falling prices driven by decreased electric vehicle sales and a global oversupply of lithium ore, leading to a price drop of over 75% since June 2023. Australia, as the largest producer of lithium ore, is significantly affected, holding 52% of the global total, with reserves primarily in Western Australia. Key players such as Core Lithium and Albemarle are reducing production and shutting down operations, resulting in job losses. In contrast, companies like Pilbara Minerals and Liontown Resources are expanding production, betting on a rebound in global demand for lithium essential for energy transition and battery storage. The rise of renewable energy use among these firms can lower operational costs by reducing diesel dependence. Australia’s extraction process is energy-intensive compared to other countries, which could hinder competitiveness. The majority of lithium exported is in spodumene concentrate form, with plans to increase domestic refining capacity to reduce China’s refining dominance. However, there are concerns about strained Australia-China relations affecting investment in the sector. Efforts are ongoing to develop less polluting lithium refining methods and recycling initiatives to sustain the domestic battery supply chain and reduce environmental impact.