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Lithium demand from producers of power batteries, energy storage
and others will keep growing amid "an irreversible trend" of
global energy transition, Ganfeng Lithium Chairman Li Liangbin
told Reuters on Friday.
Some fluctuations are inevitable during the uptrend, he wrote in
response to Reuters questions.
China's lithium prices have plunged over the past year on
surging supplies and slowing demand. Spot lithium carbonate
prices in the world's top electric vehicle market are hovering
around 100,000 yuan ($14,000) per ton, about one-sixth their
November 2022 peak.
The fall has hit miners' profits, threatening to curb global
output.
"If lithium prices can stabilize between 80,000 and 150,000 yuan,
leaving upstream and downstream (companies) along the industry
chain certain profit, it might be the best development
environment for the whole industry," said Li, who is a delegate
of the National People's Congress at the annual meeting of
parliament in Beijing.
China and Chinese companies have taken many measures to
stabilize prices, Li said, including the launch of a lithium
carbonate futures trading platform and companies making
purchases via long-term contract to ensure steady supply and
prices.
Geopolitics brings certain entry barriers and risks of
investment failure for companies, wrote Li, whose company has
massive investments in overseas resources, including Australia
and Argentina. It exports to Europe, Japan and South Korea.
Gangfeng's subsidiary in Mexico had to indefinitely postpone its
target to start mining after the local government cancelled nine
of its concessions, Reuters reported in November.
On the other hand, geopolitics will aid more international
cooperation such as Chinese companies partnering with locals to
set up production, Li said.
($1 = 7.1855 Chinese yuan renminbi)
(Reporting by Siyi Liu and Colleen Howe in Beijing; Editing by
Ryan Woo and William Mallard)
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