Competition in lithium supplies – used in the manufacturing of batteries – is hotting up. Russia’s Rosatom is set to join Wealth Minerals’ new project in Chile, S&P Global Platts reports, while EnergySource may be close to producing lithium in California according to the LA Times.
That comes just as the major Chilean exporters – SQM and Rockwood – have turned the taps back on. Panjiva data shows that exports climbed 8.1% year over year in August, following a 44.5% jump in July. Growth in August was led by a 69.7% surge in exports to China and a 69.7% rise in shipments to the EU.
Source: Panjiva
The surge in volumes reversed a 2.6% slip in 2Q as SQM tried to manage prices upward, as outlined in Panjiva’s research of Aug. 28. The improvement in volumes shipped has been accompanied by a further slump in achieved prices. The average export value per ton fell 34.0% in August after a 33.3% slide in July and an average 25.1% reduction in 2Q.
The resulting export value of $8,642 per ton in August was the lowest since Dec. 2016.
With more competition emerging and an apparent race to boost exports it will require a recovery in demand from the electric vehicle and consumer electronics industries to make a meaningful difference to export values.
Source: Panjiva