Copper price rises on weak dollar, China stimulus hopes
China’s Congress discussed raising local government debt ceilings to address hidden debt.
Lithium giant Albemarle Corp expects China’s electric vehicle (EV) market to grow 40% this year, or at least by 3 million vehicles, boosting demand for the battery metal in the world’s largest auto market.
China’s government has been phasing out subsidies for EVs, but Albemarle said so far those steps have had only a “limited impact” on EV demand. Executives attributed weak Chinese auto sales data in January to the Lunar New Year holiday.
Chinese lithium customers are not slowing orders and the country’s stockpiles of cathodes and battery parts are decreasing, a harbinger of demand for the battery metal, executives said.
“Our biggest challenge is managing the tremendous growth opportunity in front of us,” chief executive Kent Masters told investors on a conference call after the company posted better-than-expected quarterly results.
Separately, executives said they hoped the US Inflation Reduction Act would make permitting easier for its planned lithium mine in Kings Mountain, North Carolina, and that they are open to partnering with an automaker for a planned European lithium processing plant.
The company is also in “active discussions” about restructuring its MRBL joint venture in Australia with Mineral Resources Ltd.
(By Ernest Scheyder; Editing by Barbara Lewis)
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