Grab your picks and shovels, folks, there’s lithium in them thar salt flats! Galaxy Resources Ltd, a major producer of the lightest of metals, reported this week that prices for both technical- and battery-grade lithium carbonate in its key market, China, have soared - current prices are up almost 17% compared to last year.
The spot price for battery-grade lithium carbonate in China has hit levels of approximately $7,000 per ton in recent months.
Other players such as Rockwood Lithium and FMC Lithium have raised their prices for the alkali metal by 20% or more this year. Analyst Jonathan Lee of Byron Capital said, “the outlook for lithium is very strong in light of some of the uncertainty of other metals such as copper and many of the industrial metals. Lithium has grown roughly at 10 to 15 percent over the past two years on a per-annum basis. We’re having another strong year this year.”
Galaxy Resources (Australian Securities Exchange: GXY) has interests in Australia, China, Canada and South America, including the Sal de Vida brine project in the “lithium triangle” (where Chile, Argentina and Bolivia meet), which is currently the source of 60% of global production of the silvery stuff. The company’s goal is to be involved in every step of the lithium supply chain - it recently completed a feasibility study for a proposed lithium-ion battery plant.
Soucre: Galaxy Resources Limited
Image: Dennis s.k