Australian lithium miner Alchem Ltd said on Tuesday that lithium carbonate prices for the second half of fiscal year 2022 are expected to jump 80% from the first half due to rising demand for the metal used in electric vehicle batteries.
Lithium prices soared last year amid supply constraints, as automakers around the world began to invest billions of dollars to transition to cleaner modes of transportation due to global pressure to cut carbon emissions.
However, Olkem said the rapid increase in Omicron-related COVID-19 cases globally will continue to impact operations and development activity in the near term.
Allchem, formed from the merger of Orocobre Ltd and Galaxy Resources, said it continues to see strong demand for its spodumene concentrate, the ore from which lithium is extracted, and lithium carbonate, as supply-side tightness in raw materials and throughout Keeps maintained. battery supply chain.
The company’s Mount Catlin mine produced 52,225 dry metric tons (DMT) of spodumene concentrate in the quarter, bringing total annual production to 230,065 DMT, up 4.5% from its previous guidance.
But production at Alkem’s flagship Olaroj mine for the quarter declined 2% from last year to 3,644 tonnes.
Allchem said commissioning and first production at its Sal de Vida mine has been delayed until the second half of 2023 due to issues related to permits and the pandemic.
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