International Battery Metals (IBAT) announced on Wednesday that it will suspend operations at its modular direct lithium extraction (DLE) plant operated in partnership with U.S. Magnesium. The suspension will remain in effect until lithium prices recover from their current lows.
U.S. Magnesium, a producer of magnesium, uses IBAT’s lithium chloride to manufacture lithium carbonate for sale to battery manufacturers. The decision comes in response to a more than 80% drop in lithium prices over the past year, primarily due to overproduction in China and decreased demand for electric vehicles.
The downturn in pricing has impacted other industry players as well. Chinese battery giant CATL has suspended production at certain mines. Albemarle, the world’s largest lithium miner, implemented a second round of cost reductions earlier this year and conducted layoffs. Piedmont Lithium also withdrew its loan application intended for mine development to conserve cash.
In July, IBAT launched its DLE technology to commercially produce lithium, entering a competitive field with companies like Standard Lithium, SLB, and Rio Tinto, all vying to pioneer this innovative extraction method.
“Since the beginning of June, there has been significant weakness in pricing,” said Iris Jancik, Chief Executive Officer of IBAT. “We still expect the lithium market to grow and are optimistic we will see better conditions in 2025.”
Source: Reuters
