- Lithium prices plummet, impacting Australia’s mining industry
- The drop in prices is due to falling global sales of electric vehicles and an oversupply of lithium ore
- The sharp decline in lithium prices has forced several mining companies to halt operations
Lithium prices plummet, impacting Australia’s mining industry
Once dubbed “white gold” for its crucial role in rechargeable batteries, lithium, the ultra-light metal that can float on water, has seen its value plunge dramatically over the past year.
The drop in prices is largely due to falling global sales of electric vehicles and an oversupply of lithium ore. Since June 2023, the cost of lithium’s primary compound has tumbled by more than 75%.
This price crash has hit Australia particularly hard, as the country is the largest producer of lithium ore, responsible for 52% of global output in 2022. Australia also holds the second-largest lithium reserves, primarily in Western Australia, with smaller deposits in the Northern Territory.
The sharp decline in lithium prices has forced several mining companies to halt operations.
More recently, in August, US-based Albemarle revealed plans to scale back production at its Kemerton processing plant, located about 170 kilometres south of Perth, which could lead to over 300 layoffs.
This month, Arcadium Lithium followed suit, announcing the closure of its Mt Cattlin mine in Western Australia, citing low prices as the cause. The company’s shares are traded in both the US and Australia.