Supply Chain & Raw Materials

Latest Trends In The Lithium Industry Many producers keep operations going, despite curtailments elsewhere, and mine permits continue to be granted

Supply is emerging from new sources, such as Argentina, Africa, and Chinaʼs Sichuan province

The average lithium ore grade is decreasing over time, which increases the cost of producing lithium chemicals

High-cost miners and non-integrated refiners are struggling to be profitable

Chinese lithium refineries are the lowest-cost but also underutilized

Individual mining operations of all sizes are optimizing processes and scaling up production to bring costs down

Lithium intensity in batteries is decreasing, requiring less material per kWh over time

Much more lithium is being consumed in CAM than end-use due to overproduction, especially for LFP

China leads imports & refining, but CAM is expanding overseas, precipitating a shift in regional lithium chemical consumption

Leading battery manufacturers gain influence over lithium prices as they accelerate vertical integration

Price discovery is gaining momentum on the physically settled Guangzhou Futures Exchange

Mergers & acquisitions are heating up, but supply is still diversifying by region and resources

Source: Content & analysis provided courtesy of CRU Group Distinguished Partner). For more information, visit https://www.crugroup.com.

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