Zimbabwe lithium miners want royalties to be linked to prices
The battery metal has slumped from a peak in late 2022 amid oversupply and weak demand from the electric vehicle sector.
Albemarle Corp said on Wednesday it has signed agreements with Mineral Resources Limited to restructure their MARBL lithium joint venture in Australia and for MinRes to invest in Albemarle’s conversion assets in China.
Spodumene, the most widely exploited mineral source of lithium, has to be converted to lithium for industrial usage, which is then used to manufacture lithium-ion batteries widely utilized in portable electronic devices, electric vehicles and renewable energy storage systems.
Albemarle will increase its interest in two spodumene conversion trains of the Kemerton processing plant in Western Australia to 85% from 60%, and will also operate them.
MinRes will increase its interest in Wodgina Lithium Mine Project in the Pilbara region of Western Australia to 50% from 40%, offsetting Albemarle’s increased stake in Kemerton.
In China, MinRes will acquire a 50% interest in Albemarle’s 100%-owned Qinzhou and Meishan plants in China.
The Qinzhou plant will also undergo modifications to be able to convert spodumene and is expected to commence early next year, the company added, while the Meishan plant is scheduled to be commissioned by the end of 2024.
(By Arshreet Singh; Editing by Krishna Chandra Eluri)
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