Australia’s Sayona Mining said on Thursday it is conducting an operational review of its North American Lithium operation to optimize its cost structure, in response to the persistent drop in prices of the key battery metal.
Sayona is following in the footsteps of Australian battery producers that have been hampered by a sharp plunge in nickel and lithium prices in recent months due to slower-than-expected electric vehicle demand.
On Wednesday, Pilbara Minerals said it was focusing on cost-cutting measures to preserve cash, but will go ahead with its expansion plans.
Meanwhile, Liontown Resources on Monday flagged it may delay the planned ramp-up and expansion of its flagship Kathleen Valley lithium project following a decline in prices.
As part of Sayona’s review, the CEO of the company’s Québec unit Guy Belleau left his position, and an additional 14 staff have been made redundant.
“This review of our Québec operations is focusing on reducing our cost base, enhancing productivity and improving Sayona’s ability to continue to produce lithium throughout the market cycle,” Sayona’s interim CEO James Brown said.
Sayona expects to complete the review by the end of the first quarter of 2024.
(By Shivangi Lahiri; Editing by Krishna Chandra Eluri)
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