IBAT suspends operations at its lithium extraction plant due to low prices

International Battery Metals announced on Wednesday that it will suspend operations of its modular direct-lithium extraction (DLE), at U.S. Magnesium, a private company, until the metal prices recover.

U.S. Magnesium is a producer and distributor of magnesium. It uses IBAT’s lithium chloride in the production of lithium carbonate, which it sells to battery manufacturers.

IBAT made the move amid a fall of more than 80% in lithium prices over the last year, largely because of overproduction in China and a decline in demand for electric cars.

Companies like Chinese battery giant CATL have suspended production at some mines due to the weak price environment. Albemarle - the world's biggest lithium miner - made another round of cost reductions earlier this year, and laid people off. Piedmont Lithium, meanwhile, retracted its loan application for mine development in order to save cash.

IBAT launched in July its DLE technology for commercially producing lithium. It competed with Standard Lithium (SLB), Rio Tinto, and other companies to be the first company to use this novel method.

Iris Jancik is the chief executive officer at IBAT. She said, "Since June began, prices have been significantly weaker."

We still expect that the lithium market will grow, and we are optimistic about better conditions by 2025. (Reporting and editing by Maju Sam in Bengaluru, Seher Dareen).

(source: Reuters)