Australia's lithium mining boom hit by sagging prices

Published On Sep 25, 2024, 7:10 PM

The price of lithium, essential for electric vehicle batteries and increasingly used in energy storage, has plummeted by over 75% since mid-2023 due to decreased EV sales and oversupply. This has resulted in significant layoffs and mine shutdowns in Australia, the world's leading producer of lithium. Companies like Core Lithium, Albemarle, and Arcadium Lithium are scaling back operations, while firms like Pilbara Minerals and Liontown Resources are increasing production, banking on a rebound in prices. Nonetheless, analysts suggest that the oversupply may keep prices low until at least 2028, even as lithium refining capacity in Australia is increasing to reduce reliance on exports and to enhance domestic battery production.