Some production cuts in lithium but not enough
As the collapse in spodumene concentrate prices has continued in January, focus has shifted to the cost curve and the supply/demand environment. We’ve seen early cuts from ultra-high cost producers. As we’ve noted previously the Chinese lepidolite industry is running at c.40% capacity utilisation. Core Lithium announced during the month that, following a strategic process, it had decided to halt mining and process material only from stockpiles. In Canada, Sayona Mining, which never had a chance to get to steady-state production in this cycle, has also embarked on a strategic process which we expect to result in a production cut,...
marginal cost of production