Mining companies focus on lithium
Mining giant Rio Tinto plans to invest 2.5 billion US dollars in a new lithium mine in Argentina.
Even though the price of the battery metal lithium has fallen sharply, when companies like Rio Tinto invest in the raw material, the prospects cannot be that bad. Rio Tinto wants to build a processing plant with an annual capacity of 60,000 tons of lithium carbonate at the Rincon mine. Lithium is a cornerstone of Rio Tinto's raw materials portfolio. In October, Rio Tinto had already reached an agreement to purchase the US mining company Arcadium Lithium. In addition, opportunities in Chile and Serbia are being examined with regard to lithium mines. The Rincon mine is located in the famous South American lithium triangle.
However, lithium is also available elsewhere, for example in Nevada at Century Lithium - https://www.commodity-tv.com/ondemand/companies/profil/century-lithium-corp/ . The pilot plant there already supplies lithium carbonate with a purity of 99.5 percent.
According to forecasts, a lithium surplus will dominate the market until around 2027. Around a dozen lithium producers have cut production, delayed expansions or even temporarily shut down mines. And with global demand for lithium growing, the time should also come when lithium becomes more expensive again. When sales of electric vehicles increased in 2021, the price of lithium rose sharply. A similar situation could arise again, at least after 2027. In addition to lithium, electromobility as well as energy storage and portable devices require raw materials such as cobalt and nickel. For lithium and cobalt, there are still no alternatives for rechargeable batteries in the foreseeable future. The price of cobalt also experienced ups and downs between 2016 and 2024. Cobalt that does not come from the problematic Congo is likely to be particularly popular.
In Canada, the Canada Nickel Company - https://www.commodity-tv.com/ondemand/companies/profil/canada-nickel-company-inc/ - owns cobalt and nickel. The Crawford flagship project is wholly owned by the company.
Current company information and press releases from Canada Nickel Company (https://www.resource-capital.ch/en/companies/canada-nickel-company-inc/ ) and Century Lithium (https://www.resource-capital.ch/en/companies/century-lithium-corp/ ).
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