Ganfeng begins production at Goulamina lithium mine in Mali
The project is one of the largest lithium mines in Africa.
Chilean lithium producer SQM expects to invest about $2.1 billion in the next five years to strengthen its production amid an expected increase in demand for the ultralight battery metal, the company told investors in New York on Tuesday.
About $1.332 billion of this investment would be in lithium operations, with further amounts going towards growing its nitrates and iodine capacity and maintenance between 2019 to 2023, Chief Executive Ricardo Ramos said in a presentation.
The average lithium price is expected to be between $10 and $15 per kilo by 2025, compared to the current $14.50
Demand and prices of lithium have been stifled in recent months by global trade tensions, the scaling back of electric vehicle subsidies in China and new output.
But Pablo Altimiras, senior vice president for SQM´s lithium and iodine division, said he expects solid demand in the coming years.
“The fundamentals support a vision of significant growth in the coming years,” he said.
Ramos said he expected lithium sales volume to reach 173,000 tonnes by 2025 through operations in Chile and Australia.
“The opportunities for growth in the lithium business could result in a gross profit contribution of about $1 billion by 2025,” the company´s presentation said.
The average lithium price is expected to be between $10 and $15 per kilo by 2025, compared to the current $14.50, the company predicted, with demand set to grow between 16% and 20% by 2025.
“Considering both demand fundamentals and supply cost structure, equilibrium price could be higher than historic average, even in double digits,” the company presentation said.
It is also awaiting feasibility studies on its joint venture Mount Holland project in Australia.
(By Aislinn Laing; Editing by Bernadette Baum)
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