"Lithium miner sees 25% price drop in boon for EV industry"

" Lithium miner sees 25% price drop in boon for EV industry \r\n\r\n \r\n \r\n \r\n \r\n \r\n\r\nLithium\u2019s going to get less expensive in 2023, according to a Chinese supplier of the battery metal, potentially offering some relief to electric-vehicle makers squeezed by soaring costs.\r\n\r\nPrices have already softened after a spectacular two-year rally labeled \u201cinsane\u201d by Elon Musk and \u201cunreasonable\u201d by China\u2019s BYD Co. The cool-off is poised to continue as more supply emerges to trim abnormally high margins for lithium producers, Wang Pingwei, chairman of Sinomine Resource Group Co. said in an interview on Tuesday.\r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n\u201cWe believe the gradual, downward trend for lithium will continue next year,\u201d Wang said, predicting a drop of around a quarter from current levels that will still leave the company with \u201cgood\u201d profits. Prices won\u2019t fall off a cliff as the market remains tight, said Wang, whose company operates mines in Zimbabwe and Canada.\r\n\r\nLithium\u2019s relentless rise since 2020 has hurt buyers and contributed to the first annual increase in battery costs since\u00a0 BloombergNEF\u00a0 started tracking them nearly a decade ago. Benchmark prices in China are still about twice as high as the start of 2022 \u2014 despite declining this month \u2014 as demand from the fast-expanding EV sector outstrips supply.\r\n \r\n <img class=\"wp-image-1107578\" src=\"https:\/\/www.mining.com\/wp-content\/uploads\/2022\/12\/394612996-1024x576.jpg\" sizes=\"(max-width: 1024px) 100vw, 1024px\" srcset=\"https:\/\/www.mining.com\/wp-content\/uploads\/2022\/12\/394612996-1024x576.jpg 1024w, https:\/\/www.mining.com\/wp-content\/uploads\/2022\/12\/394612996-300x169.jpg 300w, https:\/\/www.mining.com\/wp-content\/uploads\/2022\/12\/394612996-768x432.jpg 768w, https:\/\/www.mining.com\/wp-content\/uploads\/2022\/12\/394612996.jpg 1200w\" alt=\"\" width=\"1024\" height=\"576\" \/> \r\n \r\nSinomine\u2019s Wang said he sees lithium carbonate prices dropping to about 400,000 yuan ($57,443) a ton in 2023. Prices reached a record of nearly 600,000 yuan in mid-November, according to data from Asian Metal Inc. They fell for a fifth day, to 522,500 yuan, on Thursday.\r\n\r\nWang\u2019s comments echo some other forecasts. More mine supply will push the market into a surplus next year and help soften prices, BYD\u2019s Executive Vice President Stella Li said earlier this month. China\u2019s withdrawal of EV credits, as well as uncertainties over the pandemic and global economy, are also weighing on the outlook.\r\n\r\n\u201cOver the next six months, demand softness is likely to dominate the lithium price discussions as demand in China is challenged by zeroing subsidies and surging Covid-19 cases,\u201d Alice Yu, analyst at S&P Global Commodity Insights, said by email. \u201cConsumers in the West face growing affordability issues.\u201d\r\n\r\nSinomine wants to expand output worldwide, just as geopolitical tensions are growing with the US, Canada and other nations that are moving to restrict China\u2019s role in the EV supply chain.\r\n\r\nWang\u2019s firm was one of three Chinese companies ordered by Ottawa to divest stakes in Canadian-listed firms under tougher rules for foreign investment. Separately, it still owns the Tanco mine in Canada, as well as the Bikita lithium site in Zimbabwe.\r\n Looking around \r\n\u201cOur confidence to invest in more mines in North America is relatively low at present,\u201d Wang said.\r\n\r\nThe company is currently in talks for potential projects in South America, and will continue to look for opportunities in Africa, where developing mines is easier than other jurisdictions, he said. Central Asia is another prospect \u2014 including Afghanistan once the security situation improves there, he said.\r\n\r\nSinomine currently has 25,000 tons of annual production capacity for battery-grade lithium hydroxide and carbonate. The company expects that to increase to 60,000 tons next year, and is targeting 100,000 tons capacity by 2025, Wang said.\r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n "

"Lithium miner sees 25% price drop in boon for EV industry"

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