Deals are being discussed at between zero and 2% off an index of spot prices, said the people, who asked not to be identified discussing confidential matters. That compares with discounts of about 5% to 10% for some 2024 deals in the last round of talks.
The tighter levels comes as producers continue to struggle with thin margins, and suggests the sector is hoping for a mild improvement in conditions over the coming 12 months. Deals will also be subject to negotiations over volumes, time periods and other variables.
The negotiations over supply of lithium chemicals — the output from refineries — are for customers including manufacturers of cathode, batteries or electric vehicles. Asia is by far the top lithium buyer, while long-term contracts account for the bulk of purchases made by most South Korean, Japanese and Chinese users.
The past year has been torrid for lithium, as a global slowdown in the pace…
