Lithium prices have crashed this year, squeezing margins at Australian miners

ABC NEWS (Australia)

Lithium prices peaked in 2022 and have been falling ever since. Australian miners say volatile price swings are part of the growing pains of an emerging industry.

Transcript

00:00The cost of mining this lithium-rich ore is coming uncomfortably close to the price Australian

00:07miners are selling it for.

00:09Pricing is lower at this time, but we've seen that in the past.

00:14Prices have tumbled from their peak in late 2022 to below 900 US dollars a tonne as a

00:20wave of new lithium mines entered development in China, Africa and South America.

00:26At the same time, demand for electric vehicles has waned.

00:30This is a slowing of growth versus the rapid growth for an electric vehicle demand that

00:35we've had in the last couple of years.

00:36So far, European and American automakers have failed to deliver a mid-sized electric vehicle

00:42at the right cost for consumers, and that's seen many fail to meet sales targets over

00:48the last year.

00:50These are very challenging to make profitably with high margin.

00:53Chinese automakers have been able to sell more affordable EVs, but in Europe, the United

00:59States and Canada, they're now subject to hefty tariffs.

01:03Those trade barriers are part of a wider push to develop battery supply chains outside of

01:08China.

01:09Both North America and Europe are going to become big markets for EV growth.

01:14There are no signs of the wider industry malaise at this mine site in WA's Pilbara.

01:19In fact, plans are afoot to add an extra 50% to capacity in the next 12 months.

01:26Pricing has gone up, it's come down, but the long-term trajectory looks fantastic.

01:31That long-term outlook relies on global mandates to phase out internal combustion engine vehicles

01:37and renewable energy targets.

01:39But with new mines coming online overseas, Aussie miners are set to face even steeper

01:44competition while they wait for prices to rebound.

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