Contact Benchmark’s Louis Bernard for more information.

lbernard@benchmarkminerals.com

Happy Tuesday!

Is the lithium market recovering? Chinese battery grade lithium carbonate prices rose 19% over the week ending 17 May, suggesting that the seven month decline in lithium prices might finally be over.

Destocking in the supply chain is also coming to a close, according to Chilean lithium producer SQM, which would further indicate an impending recovery.

Rising lithium chemicals prices coincided with a 32% dip in spodumene in the two weeks leading up to 17 May, relieving pressure on Chinese refiners after months of squeezed margins.

Last week Tesla broke ground on its lithium hydroxide refinery in southwest Texas. The company’s chief executive Elon Musk has called them the “fundamental choke point” in the battery supply chain. Benchmark’s principal lithium analyst Cameron Perks has explained why Musk is right.

Elsewhere, French President Emmanuel Macron has boosted France’s position in the battery supply chain, with two deals to build batteries and battery materials in the country.

ProLogium, a Taiwanese solid-state battery developer, will invest €5.2 billion ($5.7 billion) to build a gigafactory in Dunkirk. The 48 GWh factory, set to enter production in 2026, could account for 20% of global solid-state battery production by 2030 when it is due to reach full capacity.

Also in Dunkirk, France is set to build its first cathode material plant through a joint venture between China’s XTC New Energy Materials and France’s Orano, a nuclear materials specialist. The two companies plan to invest €1.5 billion ($1.6 billion) in a cathode active material and precursor plant, though the capacity has yet to be announced.

The plant will help Europe localise the battery supply chain. Europe currently lags behind North America in terms of planned cathode plants, according to Benchmark.

Have a good weekend,

The Benchmark Source Team

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