Although lithium prices remain low, and recent market volatility has caused confusion, Brinsden sees reasons for optimism. Speaking at the Diggers & Dealers Mining Forum in Kalgoorlie, Western Australia last week, he noted that while the supply side is currently ahead, it won’t last long given the ongoing growth in demand.
Much of the lithium oversupply is due to China, according to Brinsden. He pointed out that China had virtually no competitive advantage in lithium raw materials and the assets the country had developed were “typically not that great”.
At the conference, Brinsden explained that China has been building out the right-hand side of the cost curve to enable the biggest possible supply growth in shortest amount of time.
Speaking to MINING.COM, Brinsden said China has been developing high-cost domestic lepidolite assets, as well as lepidolite, petalite and even direct shipping ore in Africa.
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