Vulcan Lithium Hydroxide Project Advances as German Construction Begins

Vulcan Lithium

Vulcan lithium hydroxide project development has moved into major construction in Germany, marking a key step for Europe’s domestic battery materials supply chain. Australian-listed Vulcan Energy has started building its 24,000 t/yr Lionheart lithium hydroxide project in the German state of Hesse.

The Vulcan lithium hydroxide project is scheduled to produce first output in 2028. The construction start follows Vulcan’s receipt of a six-year commercial production licence for the facility in March.

The Vulcan lithium hydroxide project is strategically important because Europe remains heavily dependent on imported lithium chemicals for battery manufacturing. Local lithium hydroxide production could support electric vehicle, battery cell and cathode supply chains across the region.

Vulcan plans to produce battery-quality lithium from low-impurity geothermal subsurface brines. The company will use direct lithium extraction technology, linking lithium production with geothermal resource development in the Upper Rhine Valley.

Geothermal Brines Support Europe’s Local Lithium Strategy

The Lionheart project is part of Europe’s broader effort to build domestic critical minerals capacity. Lithium hydroxide is a key input for high-nickel cathode chemistries used in electric vehicle batteries.

Vulcan’s route is different from conventional hard-rock lithium mining or evaporation pond production. The company plans to extract lithium from geothermal brines, then process it into battery-quality lithium hydroxide.

This matters because direct lithium extraction can reduce land use and accelerate processing compared with traditional evaporation routes. However, DLE projects still face technical and commercial execution risk because each brine system has different chemistry and operating requirements.

Construction of the surface extraction plant at Landau in the Upper Rhine Valley began in February. This upstream extraction work is critical because the lithium hydroxide plant depends on reliable brine supply and stable lithium recovery.

The project’s low-impurity geothermal brine base could give Vulcan a useful advantage if it can scale the process reliably. Battery customers require consistent quality, traceability and long-term supply security.

Public Funding Highlights Strategic Battery Materials Push

The Lionheart project received around €104mn in funding from Germany’s federal government and the states of Rhineland-Palatinate and Hesse last year. This public support shows how lithium processing has become an industrial policy priority in Europe.

Germany has a major automotive industry and is expanding battery manufacturing capacity. Domestic lithium hydroxide production could reduce exposure to overseas conversion hubs and strengthen regional supply resilience.

The project also fits Europe’s push to localise more of the battery value chain. Mining or extraction alone is not enough. Europe needs lithium chemicals, cathode materials, battery cells, recycling and downstream qualification with automakers.

Vulcan’s 24,000 t/yr planned capacity would not satisfy Europe’s full lithium demand. However, it could become a meaningful regional source if production starts as planned in 2028.

The next challenge is execution. Vulcan must complete construction, prove DLE performance, operate the geothermal brine system and qualify lithium hydroxide with battery customers.

The Metalnomist Commentary

Vulcan’s construction start shows that Europe’s battery supply-chain strategy is moving from policy ambition to industrial buildout. The project’s success will depend on whether geothermal brine extraction and lithium hydroxide conversion can scale reliably enough to meet automotive-grade standards.

AMG Lithium Hydroxide Sales Lift First-Quarter Profit as German Refinery Starts Output

AMG Lithium

AMG Lithium hydroxide sales drove a sharp first-quarter turnaround as AMG Lithium began selling unqualified battery-grade lithium hydroxide from its new German refinery. The subsidiary of AMG Critical Minerals sold $21mn of lithium hydroxide in January-March, helping revenue rise by 89%.

AMG Lithium hydroxide sales marked the first commercial contribution from the German refinery. The plant produced its first commercial batches during the quarter, giving AMG a new downstream revenue stream beyond spodumene concentrate.

AMG Lithium hydroxide sales remain at an early stage because the material has not yet completed customer qualification and approval processes for long-term supply contracts. The “unqualified” label does not mean the product lacks battery-grade characteristics. It means customers have not yet fully approved it for routine contracted supply.

The result shows how lithium producers are trying to move further down the battery materials chain. Spodumene mining remains important, but lithium hydroxide refining offers higher-value exposure if qualification, consistency and customer approvals are achieved.

German Refinery Adds Downstream Lithium Exposure

AMG Lithium’s first-quarter performance shows the strategic value of adding refining capacity in Europe. The German refinery allows the company to convert lithium feedstock into lithium hydroxide closer to European battery and cathode customers.

Battery-grade lithium hydroxide is a key input for nickel-rich cathode chemistries used in electric vehicles and high-performance batteries. European supply remains strategically important as the region seeks to reduce dependence on imported battery chemicals.

The refinery’s first commercial batches therefore carry industrial significance beyond the initial sales value. AMG is building a position in the midstream lithium chain, where qualification, product quality and customer trust determine long-term value.

However, qualification remains the key hurdle. Battery customers require strict consistency, impurity control and process reliability before committing to long-term supply agreements.

The company’s current sales are therefore an early commercial step, not a fully mature refinery ramp-up. The next stage will depend on customer approvals, stable production volumes and the ability to secure higher-value contracts.

Brazil Spodumene Recovery Supports Integrated Model

AMG’s Brazil lithium mine also improved during the quarter. Spodumene production rose by 11% on the year to 13,454t, recovering after ore grade and equipment issues affected output last year.

The mine is back operating in line with AMG’s 2026 target guidance of 130,000 t/yr. Current capacity is around 100,000-110,000 t/yr, according to the company.

Spodumene pricing also strengthened. AMG’s average realised cif China spodumene sales price rose to $916/t in the first quarter, up 43% from $640/t a year earlier.

Higher lithium prices supported the lithium segment’s profitability. AMG Lithium swung to a $15.4mn profit from a $13.9mn loss a year earlier, helped partly by the upward valuation of existing inventory.

But the group’s overall profit still fell by 25% because AMG excludes inventory mark-ups from its final figures. This shows that headline lithium segment improvement partly reflects accounting treatment rather than only operating cash generation.

Shipping delays also capped first-quarter performance. More than 12,000t of spodumene shipments were delayed into April-June, pushing related revenue into the second quarter.

For AMG, the strategic direction is clear. The company is combining Brazilian spodumene production with European lithium hydroxide refining to capture more value across the lithium chain. The model will become stronger if refinery qualification progresses and delayed shipments translate into second-quarter revenue.

The Metalnomist Commentary

AMG Lithium’s first-quarter profit shows how quickly downstream refining can change the earnings profile of a lithium producer. The real test is not the first $21mn of hydroxide sales, but whether AMG can qualify the product, scale output and turn European refining into a durable margin advantage.

IGO lithium hydroxide refinery faces hurdles as Greenbushes lifts spodumene output

IGO

IGO lithium hydroxide refinery performance weighed on fiscal results despite a group profit. IGO lithium hydroxide refinery output rose year on year, but remained below guidance. As a result, management flagged more impairments and a cautious production outlook.

Kwinana update: IGO lithium hydroxide refinery under pressure

IGO reported a A$62.3mn profit for FY2024-25. However, the IGO lithium hydroxide refinery at Kwinana lost A$28.7mn. Equipment failures kept April–June production well below nameplate. Quarterly output reached 2,126t, up 60pc year on year. Full-year lithium hydroxide totaled 6,782t, almost doubling last year. Management expects further impairments of A$70–90mn for its 49pc JV stake. An earlier write-down of A$524.6mn already reduced the asset’s value. Train 2 construction remains halted while options are reviewed.

Upstream strength: Greenbushes delivers, Nova trims guidance

Greenbushes lifted second-quarter spodumene output to 340,203t, up 2.4pc on the year. Full-year production reached ~1.48mn t, within 1.35–1.55mn t guidance. Site cash costs averaged A$325/t in FY2024-25, with A$366/t in April–June. Spodumene sales rose 12pc on the quarter to ~411,855t after port delays eased. Guidance for FY2025-26 is 1.5–1.65mn t, with a third chemical grade plant due by late 2025. That plant could add up to 500,000 t/yr of concentrate. Nova produced 5,107t of nickel in April–June and 16,371t for the year. Next year’s guidance targets 15,000–18,000t nickel and 600–700t cobalt.

The downstream landscape in Kwinana is tightening. Covalent Lithium completed its 50,000 t/yr refinery, underscoring competitive pressure. Meanwhile, CEO Ivan Vella emphasized focus on Greenbushes with partners Tianqi Lithium and Albemarle. IGO guided 9,000–11,000t of lithium hydroxide for FY2025-26, reflecting operational caution. Therefore, the path to stable downstream margins remains challenging.

The Metalnomist Commentary

Kwinana’s setbacks confirm how hard first-wave hydroxide plants must fight for reliability. Upstream strength at Greenbushes helps cushion earnings, but downstream scale and uptime will decide value capture. Watch the Train 1 impairment, Train 2 timing, and IGO’s offtake strategy as prices and unit costs converge.

Vulcan Energy German Lithium Licence Advances Lionheart Supply Plan

Vulcan Energy

Vulcan Energy German lithium licence approval strengthens the company’s plan to bring its Lionheart lithium hydroxide project in Germany into commercial production in 2028. The Australian developer has secured a six-year commercial production licence for its Insheim production area, a key part of the planned 24,000 t/yr lithium hydroxide project.

The licence supports Vulcan Energy’s integrated geothermal lithium model. At Insheim, the company extracts lithium-rich geothermal brine while generating renewable energy, linking battery materials production with low-carbon power generation.

The Vulcan Energy German lithium licence also improves project credibility at a critical stage. The company began construction at Lionheart in February 2026 and secured a mix of grant, equity, and debt funding in December 2025. Further production licences will still be needed as Vulcan expands the project footprint.

German Geothermal Lithium Gains Industrial Relevance

Germany’s battery supply chain needs domestic and regional lithium sources to reduce dependence on imported raw materials. Vulcan’s Lionheart project targets that gap by producing lithium hydroxide from geothermal brine in Europe’s largest automotive market.

The Insheim licence gives Vulcan a regulated path to commercial production in one of its core operating areas. The initial term runs for six years, but the company plans to apply for an extension of at least 30 years. That longer horizon matters because battery material customers need supply security beyond short contract cycles.

The Vulcan Energy German lithium licence also supports Europe’s broader industrial policy goals. Lithium hydroxide remains essential for high-nickel cathode chemistries used in electric vehicles. A domestic German source could help automakers and cathode producers reduce supply chain risk.

Offtake Commitments Support Lionheart Financing

Vulcan has already placed most of its initial Lionheart output under offtake arrangements. The company expects to sell 94-99pc of early production to four customers, including Glencore and Stellantis.

Glencore will receive around 20pc of Lionheart output over eight years. This commitment gives Vulcan a major commodity partner while providing Glencore with exposure to European lithium hydroxide supply.

The project still faces execution risk. Vulcan must secure additional licences, complete construction, prove commercial-scale brine processing, and deliver consistent battery-grade lithium hydroxide. However, permitting progress, customer commitments, and financing support make Lionheart one of Europe’s more advanced lithium supply projects.

The Metalnomist Commentary

Vulcan’s progress matters because Europe needs lithium projects that are both local and commercially bankable. The licence does not remove technical risk, but it moves geothermal lithium closer to becoming a real part of Germany’s battery materials supply chain.

Covalent Kwinana lithium hydroxide output begins as refinery enters production phase

Covalent Lithium

Commissioning shifts to production at Australia’s third hydroxide refinery

Covalent Kwinana lithium hydroxide output has started, marking a key commissioning milestone. The 50,000 t/yr refinery has moved into production. The company is preparing commercial samples for customer qualification. The plant can support about one million EV batteries yearly. That estimate assumes average 50kWh battery packs. Covalent Kwinana lithium hydroxide output adds new supply in Western Australia.

Vertical integration supports ramp, but expansion remains uncertain

Covalent Kwinana lithium hydroxide output draws feed from Mount Holland. The mine and concentrator supply the Kwinana refinery. Covalent is a Wesfarmers and SQM joint venture. The site follows IGO-Tianqi Kwinana and Albemarle-Mineral Resources Kemerton. Both plants started in May 2022 during softer prices. Analysts questioned local processing expertise earlier this year. Wesfarmers said it was cautiously optimistic in February. Losses persist, including a A$24mn deficit last August. Expansion plans to 100,000 t/yr remain on hold. The concentrate expansion of 760,000 t/yr is also pending guidance. Therefore, capital discipline shapes near-term strategy.

Market dynamics will influence the ramp profile. Qualification timelines can delay commercial volumes. However, vertical integration should improve cost control and logistics. Reliability and product consistency will determine contract traction. Meanwhile, Australian hydroxide capacity is consolidating. Kwinana’s ecosystem now hosts three operating refineries. Covalent Kwinana lithium hydroxide output strengthens regional battery material clusters.

The Metalnomist Commentary

Covalent’s start-up is strategically important for non-China hydroxide supply. Yet ramp execution and qualification remain the critical hurdles. Watch unit costs, recovery rates, and offtake depth through 2026.

Tesla Launches Texas Lithium Hydroxide Refinery: A Game Changer for EV Battery Production

Tesla Lithium Hydroxide Refinery

Tesla has officially begun operations at its lithium hydroxide refinery in Texas, marking a significant step in the company’s strategy to control its supply chain for critical battery materials. Located near Corpus Christi, the new facility aims to process lithium at scale, securing Tesla’s position as a major player in the electric vehicle (EV) market and ensuring a more stable supply of this vital element.

Tesla’s Vision for Lithium Refining at Scale

Following the groundbreaking of the facility in May 2024, Tesla has now successfully processed raw materials through its kiln. This refinery is a pivotal part of Tesla's plan to reduce its reliance on third-party suppliers and mitigate the effects of skyrocketing lithium prices. Tesla’s CEO, Elon Musk, emphasized that while lithium is abundant globally, the slow pace of extraction and refinement has created a bottleneck. The Texas refinery is designed to address this challenge by processing lithium more efficiently and directly at scale.

The facility is capable of refining lithium hydroxide, a key component in EV battery production. Tesla's refinery will primarily process spodumene concentrate, the most common raw material used to produce lithium hydroxide. However, the company has also announced plans to process recycled batteries and manufacturing scrap at the facility in the future, which would further enhance the sustainability and efficiency of its operations.

Advanced Refining Technology and Sustainable Practices

One of the most notable features of Tesla's new refinery is its acid-free lithium refining method, which reduces environmental impact compared to traditional refining techniques. The byproduct of this process—comprising sand and limestone—can be used in construction materials, further contributing to the sustainability goals of Tesla’s operations.

The refinery has a projected capacity of 50 GWh/yr, though Tesla has not disclosed a specific timeline for ramping up to full production capacity. The company’s efforts to diversify its lithium supply chain are also evident in its sourcing strategy. In 2023, Tesla sourced over 75% of its lithium from mining and refining companies, including industry giants such as Albemarle, Acradium, Ganfeng, and Yahua.

Implications for the EV Industry and Lithium Supply Chain

Tesla’s Texas lithium refinery represents a critical move in the global shift toward more sustainable and efficient lithium extraction. As demand for electric vehicles continues to surge, securing a stable and cost-effective supply of lithium is paramount. This refinery could serve as a model for other manufacturers looking to mitigate risks associated with lithium shortages and price volatility.

While Tesla has yet to provide full details on the ramp-up timeline, the opening of this facility signals the company’s ongoing commitment to innovating within the energy and automotive sectors, ensuring that it remains a leader in the electric vehicle industry.

Vulcan Energy Resources Starts Lithium Hydroxide Production at German Demonstration Plant

Vulcan Energy Resources

Lithium and geothermal group Vulcan Energy Resources has begun production of lithium hydroxide at its demonstration plant in Frankfurt, aiming for commercial production by 2027. This represents a two-year delay from its original timeline but positions Vulcan as a leader in carbon-neutral lithium extraction and processing.

From Pilot Production to Commercial Goals

Vulcan first started producing lithium chloride at its pilot extraction plant on April 8, 2024, and on December 21, initiated lithium hydroxide production using lithium chloride as feedstock. The demonstration plant has a capacity of 55 tonnes per year (t/yr), sufficient for regulatory compliance across at least three of the four required stages before commercial-scale operations commence.

The company plans to supply lithium hydroxide to key partners, including LG Energy Solutions, Umicore, Stellantis, Renault, and Volkswagen. As part of Phase 1 production, Vulcan aims to deliver 24,000 t/yr of lithium carbonate equivalent (LCE), enough for around 480,000 electric vehicles (EVs) annually, assuming an average EV battery capacity of 50kWh.

Low-Carbon Lithium Production with Geothermal Power

Vulcan employs direct lithium extraction (DLE) technology at its plant in the Upper Rhine Valley, achieving up to 95% efficiency — far higher than the 40-60% typical of traditional methods. By using geothermal brine to power extraction, the company eliminates fossil fuels from its processes, claiming the lowest carbon footprint in the global lithium production industry.

According to Cris Moreno, Vulcan’s CEO, the integrated upstream and downstream operations will produce lithium hydroxide without reliance on fossil fuels. "This allows us to provide affordable baseload heat and power, offering a sustainable and economically viable alternative," Moreno stated.

Challenges and Opportunities

Although Vulcan has twice delayed its commercial production schedule, its innovative approach to lithium extraction aligns with growing demand for sustainable materials in the EV market. Vulcan plans to create at least 1,300 direct and 1,500 indirect jobs upon reaching Phase 1 capacity.

However, the company has yet to complete a definitive feasibility study for Phase 2, which will further expand production and meet growing demand from global automakers and battery manufacturers.

AMG Advances Lithium Hydroxide Refinery in Germany with Integrated Supply from Brazil’s Mibra Mine

AMG Critical Materials

Bitterfeld Plant Set for Ramp-Up as AMG Expands Low-Cost Lithium Feedstock Operations and Secures Offtake with EcoPro

AMG Critical Materials On Track to Launch First German Lithium Hydroxide Refinery

AMG Critical Materials, a Dutch specialty chemicals producer, is making steady progress toward the ramp-up of its lithium hydroxide refinery in Bitterfeld, Germany. The first module, with a capacity of 20,000 metric tonnes per year, is designed to supply high-purity lithium hydroxide to Europe’s fast-growing battery manufacturing sector.

The German plant will process technical-grade lithium salts sourced from AMG's integrated Mibra Mine in Brazil, which produces lithium concentrate and co-produces tantalum, providing a critical cost advantage in spodumene processing.

Brazil's Mibra Expansion Strengthens AMG’s Vertically Integrated Lithium Strategy

In 2024, AMG completed the expansion of its Brazilian lithium operations, increasing production capacity from 90,000 tonnes to 130,000 tonnes per year. Despite selling 88,966 dry metric tonnes of concentrate—6% less than in 2023—the company achieved an average sales price of $854/dmt cif China.

Crucially, the Mibra Mine maintains a low production cost of $458/dmt, supported by tantalum byproduct credits. This low-cost feedstock enhances AMG’s competitive position as the Bitterfeld plant begins to scale production.

Offtake Agreement Secured with EcoPro as European Battery Market Grows

To ensure downstream placement, AMG signed a binding multiyear supply agreement in 2022 with South Korea’s EcoPro, one of the world's largest cathode material producers. Under this deal, AMG will supply battery-grade lithium hydroxide from its Bitterfeld refinery, reinforcing its role in the European EV battery supply chain.

The project aligns with EU ambitions to localize and secure critical raw material supplies amid growing demand for sustainable energy technologies. AMG’s fully integrated mine-to-refinery model positions it as a key player in Europe’s lithium ecosystem.

IGO and Tianqi Lithium Suspend Dividends Amid Lithium Inventory Challenges

Tianqi Lithium Energy Australia (TLEA)

Australia-based IGO and China's Tianqi Lithium have announced the suspension of the annual dividend for their joint venture, Tianqi Lithium Energy Australia (TLEA), citing lower sales and an increasing inventory of lithium salts at their Kwinana Refinery. This decision reflects broader market challenges, including shifts in battery chemistry that affect demand for lithium hydroxide.

Inventory Buildup and Market Dynamics

IGO, which holds a 49% stake in the Kwinana refinery through the joint venture, reported a significant buildup of lithium hydroxide inventory. The refinery, which was shut down in October 2024 for scheduled maintenance, is facing ongoing challenges with inventory management due to weaker-than-expected demand growth for lithium hydroxide. This demand slowdown is partly attributed to shifts in battery chemistry, with converters increasingly retrofitting production lines to switch from lithium hydroxide to lithium carbonate production.

The change in preference towards lithium carbonate is driven by its use in lithium iron phosphate (LFP) batteries, which are becoming increasingly popular in hybrid electric vehicles, affordable mass-market models, and energy storage projects.

Financial Implications and Outlook

As a result of these market conditions, IGO indicated that TLEA would not issue dividends for the fiscal year 2025 and could not provide a timeline for when these payments might resume. This suspension reflects the joint venture's cautious approach to financial management in light of uncertain market demand and inventory pressures.

Despite these challenges at the refinery level, the Greenbushes lithium mine, part of a joint venture between TLEA and US lithium producer Albemarle, continues to perform well, generating solid cash flows. This suggests that while the refined product market faces difficulties, the raw material extraction aspect of the business remains robust.

PLS Lithium Phosphate Offtake Signals Shift Toward Midstream Battery Materials

PLS Lithium

PLS lithium phosphate offtake with China’s Ningbo Ronbay New Energy Technology marks a strategic step by the Australian lithium producer into higher-value battery materials. The agreement covers lithium phosphate from PLS’ midstream lithium refining demonstration plant.

PLS lithium phosphate offtake gives the company an early customer pathway as it tests whether spodumene can be converted into an intermediate chemical product with broader downstream appeal. The plant is scheduled to deliver first product in the third quarter of 2026.

PLS lithium phosphate offtake also links the company directly with Ronbay, one of the world’s largest lithium iron phosphate cathode material producers. Ronbay will provide technical support as PLS works to optimise product quality and specification.

The agreement’s price and volume details were not disclosed. But the pricing structure will broadly reference lithium chemical prices, with a proportional mechanism similar to spodumene pricing.

Lithium Phosphate Could Shorten the LFP Supply Chain

PLS’ demonstration plant is designed to produce more than 3,000 t/yr of lithium phosphate. It will consume about 27,000 t/yr of spodumene.

The company took full ownership of the plant from former joint-venture partner Calix in February. That gives PLS more control over the development route as it moves beyond conventional lithium concentrate sales.

The strategic importance lies in the possible use of lithium phosphate as a direct feedstock for LFP cathode production. Some LFP cathode producers are testing lithium phosphate instead of lithium carbonate because it could shorten processing steps and reduce total production costs.

This matters because LFP batteries are gaining share in electric vehicles and energy storage systems. Cathode producers want lower-cost, reliable and scalable lithium inputs that can support high-volume manufacturing.

If lithium phosphate can meet strict cathode specifications, PLS could access a new customer base. Instead of selling only to lithium hydroxide or carbonate converters, it could sell directly into cathode material supply chains.

That would move PLS closer to battery manufacturers and allow it to capture more margin inside the lithium value chain.

Quality Testing Will Determine Commercial Potential

The opportunity remains at an early stage. PLS has warned that lithium phosphate must meet demanding quality requirements before it can become a commercial cathode feedstock.

Battery material customers require tight control over impurities, consistency, particle characteristics and chemical performance. A product that works technically at small scale must still prove reliability across repeated production.

Ronbay’s role is therefore important. As a major LFP cathode producer, it can provide practical feedback on product suitability, processing performance and downstream qualification needs.

The agreement also reflects a broader trend in lithium markets. Producers are no longer focused only on mining and concentrate production. They are looking for midstream products that can reduce processing complexity and improve customer access.

For PLS, lithium phosphate could serve multiple markets. It may supply existing lithium chemical producers, while also opening a direct route to cathode manufacturers.

The demonstration plant will test whether that strategy can move from concept to commercial scale. If successful, it could give spodumene producers a new pathway into battery materials without fully entering carbonate or hydroxide production.

The Metalnomist Commentary

PLS’ lithium phosphate strategy is a clear attempt to move higher in the battery value chain without jumping directly into full chemical conversion. The key test will be whether cathode makers accept lithium phosphate as a reliable feedstock at scale, not just as a technical possibility.

IGO and Tianqi Halt Expansion of Kwinana Lithium Hydroxide Project

Tianqi Lithium

Rising Inventory Levels Force Project Suspension

Australian miner IGO and China’s Tianqi Lithium have stopped all work on the second lithium hydroxide train at their Kwinana refinery in Western Australia. The decision follows a buildup of lithium hydroxide inventory at the facility, where the first 24,000-tonne-per-year train remains in its ramp-up phase. On January 24, both companies confirmed the suspension of the identical-capacity second train.

Impairment Charges and Market Challenges

IGO and Tianqi have warned investors of impairment charges related to the Kwinana site. Tianqi estimates a total impairment provision of 1.412 billion yuan ($195 million) in 2024 for construction-in-progress and right-of-use assets. This figure excludes any potential impairment for the first train. IGO stated that the final impairment value will be disclosed on February 20.

Greenbushes Mine Faces Delays Amid Lithium Market Downturn

Beyond Kwinana, IGO and Tianqi also co-own Greenbushes, the world’s largest and lowest-cost hard rock lithium mine, alongside Albemarle. The site has faced project timeline delays due to the prolonged lithium market downturn. Commissioning of its chemical-grade plant 3 has been pushed back to September-December 2026 from a previous target of July-September 2025.

Greenbushes spodumene output reached 406,000 tonnes in the third quarter of 2024, marking a 22% increase from the previous quarter but a 2% decline year-over-year. Meanwhile, lithium hydroxide production at Kwinana climbed 13% from the previous quarter and more than doubled year-over-year to 1,502 tonnes.

ABTC Accelerates Tonopah Flats Lithium Project to Boost US Battery Supply Chain

American Battery Technology Company(ABTC)

Advancing Lithium Resource Development in Nevada

American Battery Technology Company (ABTC) has launched a drill program to advance its Tonopah Flats Lithium Project (TFLP) in Big Smoky Valley, Nevada. The project holds an estimated 21.2 million metric tonnes of economically accessible lithium carbonate equivalent, positioning it as a key domestic lithium resource for the US battery industry.

The drilling initiative will support the prefeasibility study, providing geotechnical data to define the mine pit structure. Additionally, core samples will be collected for assay and characterization, further refining the lithium resource estimate. This program aims to expand TFLP's overall lithium potential, reinforcing its role in the North American EV supply chain.

On-Site Lithium Hydroxide Refinery to Lower Production Costs

ABTC plans to construct a lithium hydroxide refinery directly at the TFLP site, targeting a 30,000 t/yr production capacity. The company's production cost for battery-grade lithium hydroxide is projected at $4,302 per tonne, offering a cost-effective supply solution for electric vehicle (EV) and energy storage manufacturers.

With the US government prioritizing domestic lithium production, the TFLP project aligns with federal efforts to reduce reliance on foreign lithium imports. By accelerating development, ABTC strengthens Nevada’s position as a critical hub for battery minerals processing in the United States.

As lithium demand surges, ABTC's strategy to integrate mining and refining at Tonopah Flats could set a benchmark for sustainable lithium production while ensuring a stable supply chain for US battery manufacturers.

China’s Lithium-Ion Battery Output Jumps 24% in 2024 on EV and Storage Demand

China’s Lithium-Ion Battery

Lithium Carbonate Leads Growth Amid LFP Battery Expansion

China's lithium-ion battery production surged by 24% in 2024, driven by rising demand from electric vehicles (EVs) and battery energy storage systems (BESS). Output reached 1,170 GWh, up from 943 GWh in 2023, according to the Ministry of Industry and Information Technology (MIIT).

Segment-wise, EV battery production hit 826 GWh, while BESS batteries totaled 260 GWh, and consumer electronics added 84 GWh. The combined installed capacity for EVs and BESS rose to 645 GWh, marking a 48% year-on-year increase.

This significant expansion highlights China's continuing dominance in battery manufacturing and its strategic push into renewable energy infrastructure.

Lithium Carbonate Sees Strongest Production Growth

Battery-grade lithium carbonate production reached 670,000 metric tonnes in 2024, reflecting a 45% increase from 2023. Lithium hydroxide output grew to 360,000 tonnes, a 26% gain year-on-year, according to MIIT data.

Lithium carbonate’s growth outpaced lithium hydroxide due to increased adoption of Lithium Iron Phosphate (LFP) batteries. LFP technology, now widely used in EVs and BESS, primarily relies on lithium carbonate, rather than lithium hydroxide.

This shift reflects changing chemistry preferences among automakers and grid-scale storage developers, prioritizing cost, safety, and cycle life. As battery technologies evolve, the metals supply chain must adapt to meet diversified material demands.

For more updates on battery metals, energy storage trends, and lithium market forecasts, follow The Metalnomist.

Mangrove Lithium capacity expansion resets North America’s hydroxide map

Mangrove Lithium

Mangrove Lithium capacity expansion accelerates with a second North American refinery announcement. The new plant will produce 20,000 t/yr of battery-grade lithium hydroxide. This Mangrove Lithium capacity expansion could supply 500,000 EVs annually, despite the site remaining undisclosed.

What the new plant adds

The existing Delta, British Columbia facility starts operations by year-end. It currently supports about 25,000 vehicles per year using Mangrove’s electrochemical process. Together, the Mangrove Lithium capacity expansion anchors localized, scalable EV materials in North America.

Commercial traction and upstream integration

Signed agreements with US battery producers cover offtake for 20,000 t/yr of product. Negotiations with Tesla and Ford further diversify demand, according to Mangrove’s Annie Liu. The new plant will process spodumene concentrate, pushing the flowsheet further upstream.

For automakers, the Mangrove Lithium capacity expansion reduces import risk and logistics exposure. It also complements evolving midstream investments across the US and Canada. As a result, battery-grade lithium hydroxide supply becomes deeper and more resilient.

The Metalnomist Commentary

Scale without disclosed siting suggests incentives remain in play. Execution risk sits in feedstock sourcing, commissioning, and long-term power pricing. If timelines hold, North America gains a meaningful hydroxide anchor later this decade.

Appalachian Lithium Reserves Could Strengthen US Domestic Supply Security

USGS

Appalachian lithium reserves could give the US a much larger domestic resource base than previously recognised, according to a new assessment from the US Geological Survey. The agency said the eastern US Appalachian region may contain enough undiscovered, economically recoverable lithium to replace 328 years of US imports at 2025 levels.

Appalachian lithium reserves are hosted in pegmatites, large-grained rocks similar to granite. The southern Appalachian region is estimated to contain 1.43mn t of lithium oxide, while the northern Appalachian region holds another 0.90mn t.

Appalachian lithium reserves matter because the US still depends heavily on imported lithium. The country has only one current lithium producer and relied on imports for more than half of its supply in 2025.

The assessment adds another possible domestic supply route alongside lithium brine projects in the Smackover formation. Together, these resources could reshape US lithium strategy if they can be converted into permitted, economic and commercially scalable projects.

Pegmatite Resources Add a Hard-Rock Lithium Option

The Appalachian assessment points to hard-rock lithium potential in the eastern US. Pegmatite-hosted lithium is different from brine-based production because it usually requires mining, concentration and chemical conversion.

This gives the US another possible supply pathway. Hard-rock projects can produce spodumene concentrate, which can then be converted into lithium chemicals for batteries, energy storage and industrial uses.

Albemarle is already planning a lithium concentrator facility at Kings Mountain, North Carolina. The project is designed to produce 420,000 t/yr of lithium concentrate from spodumene.

That project is important because it could help rebuild a US hard-rock lithium supply chain. Domestic spodumene production would reduce reliance on foreign raw material and support future US conversion capacity.

However, resource estimates alone do not guarantee supply. Appalachian lithium projects would still need exploration, permitting, mine development, processing investment, environmental approvals and downstream customer qualification.

The strategic significance is still clear. The US lithium conversation is expanding beyond Nevada brines and western projects into eastern hard-rock resources with long-term supply potential.

Smackover Brines and Appalachian Pegmatites Broaden US Lithium Strategy

The Appalachian estimate follows earlier USGS work on the Smackover formation in southwest Arkansas. In 2024, the agency assessed that Smackover brines contain 5mn-19mn t of lithium, although it did not define economically recoverable volumes.

Several companies, including Equinor, ExxonMobil, EnergyX and Standard Lithium, are developing lithium projects in the Smackover region. Some are targeting commercial output around 2027.

The Smackover and Appalachian resource bases are strategically different but complementary. Smackover projects depend on brine extraction and processing technologies, while Appalachian projects would likely depend on hard-rock mining and spodumene concentration.

This diversification matters for US supply security. A lithium strategy based on multiple geological sources is more resilient than one dependent on a single basin, technology or company.

The US will still need processing capacity. Mining lithium ore or extracting lithium from brine does not automatically create battery-grade lithium carbonate or hydroxide.

That midstream gap remains the critical issue. Domestic resources must be connected to refining, chemical conversion, permitting, infrastructure and offtake agreements before they can reduce import dependence.

For battery manufacturers, the Appalachian assessment offers a long-term signal. More domestic resource potential could support future supply chains for electric vehicles, grid storage and defence-related battery applications.

The Metalnomist Commentary

The Appalachian lithium assessment is a resource-security signal, not an immediate supply solution. The US has the geology, but the decisive bottleneck will be converting resources into permitted mines, concentrators and battery-grade lithium chemicals.

Pilbara’s Spodumene Output Falls to Three-Year Low Amid Cyclone and Maintenance

Pilbara Minerals

Cyclone Zelia and Upgrades Slash Lithium Output

Pilbara’s spodumene production dropped 34pc in Q1, hitting a three-year low of 125,000 dry metric tonnes (dmt). The decline stemmed from Cyclone Zelia disruptions and planned maintenance at the 680,000 t/yr Pilgangoora plant, which was offline for 13 days.

Compared to Q1 2024, spodumene output fell by 30pc, further impacted by the closure of the Ngungaju plant in December due to oversupply-driven price weakness. This 180,000–200,000 t/yr facility is on care and maintenance and will require four months to restart when prices recover.

Output Drops Despite Growing Lithium Hydroxide Production

Pilbara’s lithium hydroxide output rose 18pc to 3,316t in Q1, driven by its two-train facility in South Korea. Train 1 alone produced 2,546t, roughly half of its 21,500 t/yr capacity, as it continues to ramp up.

Meanwhile, sales volumes plunged by 39pc to 125,500t due to limited spodumene availability. However, the firm realized a 7pc price increase, averaging $747/t (CIF China) for 5.3pc spodumene concentrate.

Long-Term Outlook: Capacity Upgrades Ahead

Pilbara continues expansion efforts, aiming to increase spodumene output to 1.2mn dmt/yr by 2027, up from 725,300 dmt in FY2024. Upgrades could buffer future volatility and position the company for demand growth from the battery sector.

The company remains focused on balancing short-term output disruptions with long-term capacity investments in both spodumene and lithium hydroxide segments.

The Metalnomist Commentary

Pilbara’s Q1 performance reflects the fragility of lithium supply chains amid weather events and market cycles. As spodumene output falls, the firm’s pivot to lithium hydroxide and long-term capacity plans show strategic adaptation.

US Lithium Salt Imports Decline in 2024 Amid Slower EV Adoption

Lithium Mining

Inventory Destocking and Market Shifts Contribute to Lower Import Figures

The United States saw a significant drop in lithium salt imports in 2024, with total imports falling to 16,170 metric tonnes (t), an 11% decrease compared to the previous year. This decline is attributed to a combination of inventory destocking and slower-than-expected adoption of electric vehicles (EVs).

Factors Behind the Decline in Lithium Salt Imports

The drop in imports can be linked to several factors, including price declines and the limited shelf life of lithium salts. As prices fell, US importers consumed lower stocks, adjusting to market conditions. Additionally, the shift towards lithium iron phosphate (LFP) batteries, which favor lithium carbonate over other lithium salts, further contributed to the decreased demand for lithium oxide and hydroxide.

Impact of Lithium Carbonate and Hydroxide Preferences

Imports of lithium oxide and hydroxide saw a dramatic 25% decrease, amounting to just 705 tonnes in 2024. Meanwhile, imports of lithium carbonate, which is crucial for LFP batteries, dropped by 10% to 15,465 tonnes. This change in battery technology preference has driven the demand for lithium carbonate, particularly as more automakers adopt LFP batteries for their EVs.

Source Countries and Global Lithium Supply Chain

Chile and Argentina played a dominant role in supplying lithium salts to the US, accounting for 98% of the total imports. Chile supplied 9,105 tonnes, while Argentina provided 6,779 tonnes. These two countries remain key players in the global lithium supply chain, with their resources being crucial to meeting the US's demand for lithium salts.

Australia's Lithium Concentrate Exports Surge in First Half of 2024

Australia's lithium concentrate (spodumene) exports saw a significant increase in the first half of 2024, reaching approximately 1.94 million metric tons. This growth was largely driven by robust demand in the second quarter, particularly from South Korea and Indonesia, as they began to ramp up their imports of Australian lithium supplies.

From April to June, exports surged by 49% year-over-year to 1.26 million tons, contributing to a 9.9% rise in total first-half shipments, according to data from the Australian Bureau of Statistics. China remained the dominant importer, accounting for nearly 95% of Australia's lithium concentrate exports, with volumes rising by 4.6% to 1.84 million tons. This surge is closely tied to China's continued growth in new energy vehicle (NEV) sales and production, which remains strong despite global concerns about slowing electric vehicle (EV) growth in other regions such as Europe and the United States.

South Korea's imports of spodumene experienced a dramatic increase, rising to 71,441 tons in the first half of the year from just 1,240 tons a year earlier. This spike follows the completion of the country's first lithium hydroxide plant late last year, which has since started production. The plant, a joint venture between Australian lithium producer Pilbara Minerals and South Korean conglomerate Posco, delivered its first lithium hydroxide order in April.

Indonesia also saw a sharp increase in spodumene imports, reaching 25,098 tons from a mere 60 tons the previous year. This growth coincides with the launch of pilot production at a lithium plant in Indonesia by Chinese lithium salts producer Chengxin Lithium, which extracts lithium from hard rock ores.

Despite these gains, the lithium market faces challenges. While most Australian lithium producers reported higher spodumene output in the second quarter—including companies like Pilbara Minerals, Mineral Resources, and Core Lithium—Core Lithium has paused its processing operations since June due to the weak lithium market conditions.

Australia's lithium concentrate exports (t)

* Source : Australian Bureau of Statistics

US Tariffs Could Boost Argentina’s Lithium Salts Production

Argentina Lithium

New Tariff Policies May Propel Argentina to the Forefront of Battery Materials Supply

US President Donald Trump’s new tariff measures, announced this week, could significantly impact the global lithium market. While many energy and mineral products, including lithium carbonate and lithium hydroxide, are exempt from new tariffs, the shift towards more localized battery production in the US could create new opportunities for Argentina's lithium sector. Argentina, with its lower-cost brine assets, could become a key player in the production of battery-grade lithium salts.

Shift in Global Battery Manufacturing and Tariffs Impact

Trump's recent tariff policy introduced significant duties on completed batteries from China, Japan, and South Korea. These duties are likely to accelerate the trend of localizing battery production in the US. Under the Inflation Reduction Act of former President Joe Biden’s administration, the US has already seen a shift toward local manufacturing, with major battery manufacturers like Panasonic, Samsung SDI, Ford, and Toyota planning to open around 10 new battery factories this year.

However, with a lack of domestic mining and processing capacity in the US, the country will increasingly rely on imports for raw materials to meet the demand for battery production. The US currently has only one operating lithium mine, Albemarle's Silver Peak mine in Nevada. Despite producing lithium carbonate and hydroxide, this mine cannot meet the higher purity standards required for battery-grade products needed in electric vehicles (EVs).

Argentina’s Competitive Edge in Lithium Salts Production

Argentina stands out due to its potential to produce high-quality, cost-competitive lithium salts. Brine operations in Argentina are expected to be more efficient and less costly than other South American and spodumene-producing countries. Although brine facilities require higher initial capital costs, their ongoing operational costs are lower than spodumene-based assets, making them an attractive option for global supply chains.

Argentina’s competitive advantage is further strengthened by its 3% royalty tax on lithium mining, compared to the 40% ceiling in Chile, which has a more developed lithium industry. Despite facing a 10% import tariff by the US, Argentina is well-positioned to expand its lithium production to meet the growing demand from battery factories in the US. According to Argentina’s Vice Minister of Energy and Mining, Daniel Gonzalez, "All of Argentina's lithium projects go to battery grade," signaling the country's commitment to producing high-purity lithium products.

While countries like Australia, Brazil, and some African nations rely on China for lithium processing, Argentina's direct production of battery-grade lithium offers it a strategic advantage in the global market.

Elevra Mangrove Lithium Offtake Could Strengthen Eastern Canada’s Battery Supply Chain

Elevra Lithium

Elevra Mangrove lithium offtake could become an important building block in Canada’s battery materials chain. Elevra has agreed to supply Mangrove Lithium with up to 144,000 t/yr of spodumene concentrate. The material would come from Elevra’s North American Lithium operation in Quebec. As a result, Elevra Mangrove lithium offtake points to a more integrated regional lithium model.

This deal matters because it links upstream mining with planned downstream conversion in eastern Canada. Mangrove intends to process the concentrate into battery-grade lithium hydroxide or carbonate. That would keep more value inside North America instead of exporting raw material only. Therefore, Elevra Mangrove lithium offtake supports the broader push for localized battery supply chains.

The commercial structure also deserves attention. Pricing will follow a market marker with both a floor and a ceiling. That approach can reduce downside risk while also limiting extreme upside exposure. Consequently, the deal structure appears designed for stability rather than pure spot-market volatility.

Quebec Spodumene Supply Gains a New Domestic Processing Route

Quebec spodumene supply is becoming more strategically important as downstream conversion capacity develops nearby. Elevra plans to begin supplying Mangrove in 2028 and ramp up deliveries to 144,000 t/yr by 2030. That timeline gives both companies room to align mine output with conversion buildout. As a result, Quebec spodumene supply could gain a stronger domestic destination.

The agreement is still conditional, which is important. The parties may sign a binding deal later, but only if Mangrove commits before June 2027 to build its conversion facility. That means project execution remains the real next test. Meanwhile, the announcement still signals serious intent from both sides.

Eastern Canada Lithium Conversion Could Broaden Elevra’s Offtake Portfolio

Eastern Canada lithium conversion could give Elevra a more diversified commercial base. The company already has offtake agreements with LG Chem and Tesla. Those contracts use different pricing formulas linked to spodumene and lithium hydroxide. Therefore, Elevra Mangrove lithium offtake would add another channel with a more regional conversion focus.

For Mangrove, the agreement is equally strategic. Securing future spodumene supply is essential if the company wants to build a viable conversion business. Without feedstock certainty, downstream lithium projects often struggle to gain credibility. Consequently, this proposed deal helps strengthen the case for an eastern Canada lithium conversion platform.

The Metalnomist Commentary

This agreement matters because it connects mine output with regional chemical conversion, which is where North America still needs more depth. The bigger issue now is not whether the idea makes sense. It is whether Mangrove can commit to the plant and turn this framework into a binding supply chain.