Why the price of lithium soars
Rising demand for lithium will keep prices high. Meanwhile, Namibia investigates China's operations. The article by Giuseppe Gagliano
The price of lithium, a key ingredient in electric vehicle batteries, rose 1,000% from 2020 to $82,000 per ton in December. Increased demand as EV production expands will keep prices high.
WILL THERE BE A LITHIUM SHORTAGE?
Industry experts predict a shortage as Western and Chinese companies fight tooth and nail for more resources. At the annual Mines and Money conference in London on 29 November the need to prioritize supply chain links to new depots plus intermediate production capacity development was underlined.
Otherwise, the experts have warned, the desired green energy transition of many countries towards zero-emission transport would not be achievable by 2030.
THE ROLE OF CHINA AND NAMIBIA
While China dominates the production of lithium-ion batteries used in electric vehicles, for which it is the largest market, it accounts for only a small amount of lithium mining production.
Indeed Namibia and other African countries with hitherto untapped lithium resources and other “battery metals” – including cobalt, graphite and nickel – have been targeted by Western and Chinese companies desperate for new sources of supply. .
For example, Australia's Lepidico is developing a $63 million lithium mine and processing plant at the old Helikon and Rubikon fields near Karibib in the central Erongo region; the on-site plant will produce concentrate for export at a new $203 million chemical conversion facility in Abu Dhabi. The company projects an annual internal rate of return of 42% over 15 years.
NAMIBIA INVESTIGATES CHINA
Meanwhile, Namibian authorities are investigating the circumstances in which a hitherto unknown Chinese firm, Xinfeng Investments, managed to acquire a lithium license. Independent Anti-Corruption Commission is investigating allegations that Ministry of Mines and Energy (MME) officials improperly facilitated Xinfeng's Namibian $50 million ($2.3 million) takeover of lithium exploration and export rights near Omaruru in northwest Erongo.
The Chinese firm was granted a mining license through 2042 for base metals in August and insiders say MME officials are widely suspected of using their relatives and associates to apply for exploration rights in areas with ore deposits. high value, especially when there is interest from Chinese investors and other foreign investors.
Meanwhile, Xinfeng has attracted controversy by allegedly trying to export large volumes of lithium ore – between 54,000 and 135,000 tons – as "trial samples" to China without local testing or trial processing.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/mondo/prezzo-litio-82000-dollari/ on Fri, 06 Jan 2023 06:16:12 +0000.