Lithium hydroxide, a refined version of the metal used in batteries, may decline to around $30,000 per tonne next year from an estimated average of $52,450 in 2023, the department said. Lithium carbonate, a precursor to the hydroxide, was 96,500 yuan per tonne on Thursday down from about 170,000 yuan in September, according to Trading Economics.
“Prices are not expected to return to previous high levels such as during 2022 and early 2023 before 2025 due to the forecast surplus in supply,” the department said. “Some higher-cost producers, such as lepidolite miners in China, have become unprofitable and cut production. However, most lithium producers will remain profitable at current prices and continue to produce.”
The five largest lithium mines, accounting for 99% of Australian spodumene output, reported A$670 to A$1,225 average costs of production per tonne over the 2022–23 financial year, the government said.
The lower…
