Lithium prices see first sustained rise in 3 years

Jan 7, 2021

BENCHMARK MEMBERSHIP ANALYSIS

Moving on up

Benchmark’s latest data shows that lithium prices are seeing their first sustained rise in three years, bringing an end to lithium’s bear market.

Lithium hydroxide and carbonate prices rose consistently in China throughout Q4 2020. This is significant because China has often proven a bellwether for the direction of global prices, with greater liquidity in the domestic market making pricing more responsive to market imbalances.

While prices remain low, and flat, in the rest of the world, improving sentiment across the spodumene and chemical sectors is creating positive momentum for contract negotiations from Q1 2021 onwards.

As we enter 2021 the lithium market is moving into a rising price environment with consequences for the entire lithium ion supply chain.

HERE’S WHAT ELSE YOU NEED TO KNOW

China’s GEM looks to take strategic control of Indonesian nickel & cobalt project. Leading Chinese battery cathode material producer, GEM, has signed an MoU to double its equity from 36% to 72% in the PT QMB New Energy Materials project in Indonesia

The project has a design capacity of 50,000 tpa of nickel and 4,000 tpa of cobalt, and had originally been due to begin commercial production in 2022.

However, since its announcement in 2018, the project’s development has been hit by numerous setbacks.

Benchmark Membership subscribers can read our analysis of developments in Indonesia here.

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TOP OF THE CHARTS

Lithium feedstock: geopgraphical supply split 2020

Source: Benchmark Lithium Forecast

Benchmark’s Lithium Forecast shows that in 2020 the bulk of lithium feedstock came from Australian spodumene and Chilean brine, but as demand ramps up we forecast a growing proportion of supply will come from the rest of the world.

Arrange a demonstration of Benchmark’s Lithium Forecast to learn more, or subscribe by filling in this form.

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CRUNCHING THE NUMBERS

181

Source: Benchmark’s Lithium ion Battery Megafactory Assessment

The latest data from Benchmark’s Lithium ion Battery Megafactory Assessment shows there are now 181 battery megafactories in the pipeline with 3,009.7 GWh of capacity set to come online in the coming decade.

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