Ellie Saklatvala, Senior Editor — Nonferrous Metals, provides a bitesize overview of the key price movements that happened in Q1 and how supply and demand fundamentals are shaping up as we move through Q2.
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Brazil gov must boost EV demand: Li miners
Brazil gov must boost EV demand: Li miners
Sao Paulo, 11 July (Argus) — At least four suppliers in the Brazilian spodumene market voiced interest in federal policies to boost demand for electric vehicles (EVs) to create a consolidated end-to-end battery supply chain in Brazil, the companies said at a conference in Minas Gerais. In an initiative led by Companhia Brasileira de Litio (CBL), executives for AMG Lithium, Lithium Ionic and PLS all pleaded for the Brazilian federal government to implement policies to boost EV demand — which would support the Brazilian spodumene market — CBL's chief executive Vinicius Alvarenga said. CBL owns the only lithium carbonate refinery in Brazil and it believes the country has the potential to have an end-to-end battery supply chain. Currently, Chinese refineries receive 99pc of all lithium chemicals produced in Brazil. "The only thing stopping Brazilian companies to make battery cells is the lack of demand from the regional market," Alvarenga said. "We need to pressure the government to incentivize the installation of lithium-based energy storage systems and to give more benefits to EV buyers." Alvarenga mentioned WEG — a multidisciplinary technology company — and Moura, the largest battery manufacturer in Latin America, as firms well suited for the job. "Brazil can be one of the world's top players in the energy transition landscape," said Leandro Gobbo, vice-president for Brazilian operations at PLS. "We have world class ore, the expertise and the technology to do so — we only lack government incentives." At the bottom of the cost curve, Brazil has one of the cheapest hard-rock lithium operations in the world, rivaling China and beating Australia and many African producers. Although China holds its place as the home to the cheapest hard-rock lithium projects in the world, Brazilian miners are also operating at a profit despite the low price environment, mainly because of cheap labor. Around half of the world's hard-rock lithium miners are currently operating at a loss. All three commercially producing spodumene companies in Brazil — Sigma Lithium, CBL and AMG — are sticking to their investment guidance and expansion plans despite falling prices. "There is an opportunity here at this low-price environment," said Blake Hylands, chief executive of Lithium Ionic, owner one of the largest undeveloped spodumene sites in Brazil. "We need to move projects forward at this time so Brazil can progress in the global stage." The average labor costs in Brazil are significantly lower than in places like Australia, which is also dealing with a workforce shortage in mining, according to Gobbo, and where employee wages have pushed most spodumene operations to operate at a loss as prices bottom. "Brazil will never beat China in capital costs and internal demand," Alvarenga said. "But despite taking a hit at those two, Brazil is the best place in the world to produce spodumene." Brazil has a combination of benefits that are not seen elsewhere, such as low royalties, a specialized workforce, solid internal and external logistics, market transparency, legal stability, high ESG and human rights standards, and the cheapest electrical energy in the world, Alvarenga said, which is mostly renewable. "If we look at other countries with cheap [spodumene] production, we don't see that," said Ligia Pinto, vice-president of external affairs at Sigma Lithium, Brazil's top lithium concentrate producer. "Our low costs do not harm human rights." The so-called Lithium Valley — a spodumene rich region in Southeast Brazil — has a production capacity of 320,000 metric tonnes (t)/yr of lithium concentrate between CBL and Sigma Lithium, the country's top producer. AMG Lithium, which operates further south, bumps up Brazil's total current capacity to 410,000t/yr. "This is a country that we can trust," Hylands said. "We are taking longer than China, but that's okay, because everyone takes longer than China." By Pedro Consoli Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
EnergyX to buy Smackover Li deposits
EnergyX to buy Smackover Li deposits
Houston, 10 July (Argus) — US lithium extraction company Energy Exploration Technologies (EnergyX) agreed to acquire Daytona Lithium, securing ownership of 35,000 gross acres of lithium brine resources in the Smackover Formation of Arkansas. EnergyX said today the deal is valued at A$40mn ($26mn), comprising A$6mn in cash and A$34mn in common stock. The acquisition expands EnergyX's Smackover footprint, building on its existing 12,500 acres to nearly 50,000 acres in total. It also extends EnergyX's Project Lonestar in northeast Texas, aimed at producing 50,000 metric tonnes (t)/yr of lithium hydroxide by 2030, with an initial phase of 12,500t/yr by 2028. EnergyX plans to vertically integrate its direct lithium extraction technology to produce low cost lithium. The acreage sits adjacent to Exxon, Chevron, and Standard Lithium in the Smackover. "The race is on" to see who will be the first to produce commercial battery grade lithium products, said EnergyX chief executive Teague Egan. Daytona Lithium is a wholly owned subsidiary of Australia-based Pantera Lithium. By Carol Luk Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
US’ 50pc Cu levy unlikely to dent Japan’s metal output
US’ 50pc Cu levy unlikely to dent Japan’s metal output
Tokyo, 10 July (Argus) — The US' sweeping 50pc tariff on copper imports effective from 1 August is expected to have minimal impact on Japanese metal producers given limited shipments to the US market. The impact of the blanket 50pc tariff by the US government will be negligible, a domestic electric copper producer told Argus on 10 July, because the company primarily supplies copper products to Asian nations. There are virtually no shipments to the US market, it added. The company's selling prices are likely to remain stable given that most purchase agreements are locked in through term contracts, the firm said. The company has not yet received unexpected windfall orders following the White House's announcement of the tariff hikes. Another Japanese metal producer echoed this sentiment, saying that the US' tariff measure is unlikely to hit its operations given limited deliveries to the country. The firm owns stakes in a South American copper mine project but its copper offtake from the mine is not destined for the US market, reinforcing the limited direct impact from the tariffs. But the company expressed concerns over potential broader implications, citing uncertainty around Washington's definition of "copper products". The impact could be larger if the US government plans to enforce tariffs on a wider range of copper-based products. The producer's concern also lingers over potential indirect impacts from possible disruptions in the metal supply chain. The company ships processed copper products to Asian nations for further manufacturing in the region, but some of the final products are partly exported to the US market. The company could face challenges if these end-products fall under the new tariff, it added. Japan produced around 1.6mn t of copper ingot in 2024, up by 4.9pc from a year earlier, according to the industry group Japan Mining Industry Association and the Japan Mining Promotive Foundation. Around half of total domestic output is exported, with the majority going to Asian markets, according to a market participant. By Yusuke Maekawa Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Brazil BEV sales remain above average in June
Brazil BEV sales remain above average in June
Sao Paulo, 9 July (Argus) — Brazil sales of fully electric vehicles (BEV) fell in June from May's record high but remained above the year's average, data from the Brazilian EV association ABVE shows. BEV sales dropped to 5,912 units in June, a 15pc decrease from 6,969 fully electric vehicles sold in May. Still, June sales were well above the monthly average of 4,932 units sold in January-May. Sales in June rose by roughly 14pc compared to the same period in 2024. The sequential decrease in sales is mostly because BEV prices returned to normal levels following steep discounts offered by Chinese automaker BYD in May, which drove demand up. BYD, which accounts for over 80pc of the Brazilian BEV market, offered discounts between R20,000 ($3,660) and R36,000 ($6,600) to push out its imported fully electric vehicles before the company opened its factory in Brazil early in July. BYD believes its marketing campaigns, media presence and fast-growing dealership network are helping to bump BEV sales numbers. In Brazil, the Chinese carmaker offers only fully electric and plug-in hybrid (PHEV) vehicles. Overall EV demand in June — encompassing BEVs, PHEVs and non-plug-in hybrid vehicles — dropped to 21,333 units, down by 4.2pc from 22,279 in May. By Pedro Consoli Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.