Albemarle DLE Project Targets Higher Lithium Recovery in Chile’s Atacama

Albemarle

Albemarle DLE project plans in Chile could reshape lithium production at the Atacama salt flats by increasing recovery while reducing net brine extraction. The US-based lithium producer has submitted an environmental assessment for a $3.1 billion direct lithium extraction project at its Chilean operations.

The project is designed to add DLE capacity alongside Albemarle’s existing evaporation pond system. The company said the technology could recover nearly twice as much lithium while extracting up to 300 fewer liters per second of brine compared with traditional evaporation methods.

Albemarle DLE project development matters because Chile remains one of the world’s most important lithium supply regions. Any improvement in recovery, water management, and environmental performance could influence future lithium investment across brine-based operations.

Direct Lithium Extraction Could Change Atacama Production Economics

Direct lithium extraction uses chemical processing rather than long evaporation cycles. This can reduce production time from 12-18 months to just days, improving project flexibility and potentially accelerating lithium output.

Albemarle plans to install six DLE processing trains across three modules. These trains will complement the company’s evaporation ponds rather than immediately replace the existing system.

The process will produce lithium-depleted brine, which Albemarle plans to reinject into the salt flats’ reservoirs. Each DLE module would allow reinjection of 100 liters per second of brine, potentially reducing the company’s net extraction rate from 442 liters per second to 142 liters per second once the system reaches full capacity.

Infrastructure Investment Shows Scale of Lithium Transition

The Albemarle DLE project is not only a processing upgrade. The $3.1 billion plan also includes supporting infrastructure such as a power transmission line, a new electric substation, expansion of an existing substation, and adaptations to storage sites and pond systems.

Construction is expected to begin in the second half of 2028. The full buildout may take up to nine years, with modules commissioned and ramped up as they are completed.

The long timeline shows that DLE remains a complex industrial transition, not a simple plug-in technology. However, if successful, Albemarle’s project could strengthen Chile’s lithium competitiveness while responding to environmental pressure over brine extraction in the Atacama.

The Metalnomist Commentary

Albemarle’s DLE plan shows that the next phase of lithium competition will focus on recovery efficiency and environmental performance, not only reserve size. Chile’s challenge will be proving that higher output and lower brine impact can move together at commercial scale.

Albemarle Energy Storage Sales Rise Despite Global Tariff Challenges

Albemarle

Lithium Sales Climb as Integrated Network Delivers Record Output

Albemarle energy storage sales rose by 7.3% year-on-year in the first quarter, reaching 44,000 metric tonnes of lithium carbonate equivalent. The increase was driven by record lithium salt production across the company’s integrated conversion network. Albemarle also reduced its dependence on external tolling, optimizing its in-house processing capabilities.

Tariff Impact Remains Limited but Not Negligible

Albemarle reported first-quarter profit of $41.3 million, a significant jump from $2.4 million in Q1 2024. The company expects only minimal direct tariff exposure due to its diversified global operations and exemptions on lithium carbonate and spodumene. However, Albemarle estimated a potential $30–40 million tariff impact in 2025 without mitigation, primarily tied to Chinese and other imports.

Albemarle Focuses on Mitigation and Asian Markets

Most of Albemarle’s lithium output is shipped to Asia, limiting U.S. tariff exposure. Still, the company has initiated mitigation strategies to reduce risk. These include better inventory control, expanded sales in lower-tariff regions, and optimized sourcing strategies. Albemarle also continues identifying supply chain efficiencies to protect profitability as tariff environments evolve.

The Metalnomist Commentary

Albemarle’s Q1 performance reflects the growing resilience of vertically integrated lithium supply chains. As energy storage demand expands globally, tariff navigation will remain critical to competitiveness in the specialty chemical sector.

Albemarle Shifts Strategy: Chengdu Site to Care and Maintenance, Focus on Lithium Carbonate

Albemarle

US lithium producer Albemarle is making significant operational changes in its strategy. The company announced that its Chengdu site in China will be placed into care and maintenance (C&M), and it will shift a portion of its Qinzhou production from lithium hydroxide to lithium carbonate. These moves reflect Albemarle's ongoing efforts to adjust its production processes amid a challenging financial year.

Financial Losses and Restructuring Measures

Albemarle reported a significant financial loss of $1.2 billion for 2024, a stark contrast to the $1.6 billion profit the company posted in 2023. This loss includes restructuring charges and asset write-offs. The company is focusing on reducing operational costs to improve its financial position in the coming years.

Despite the financial setback, Albemarle achieved notable growth in its lithium sales. The company sold 203,000 metric tonnes of lithium carbonate equivalent (LCE) in 2024, marking a 26% increase compared to the previous year. The company expects a modest sales volume increase of 0-10% in 2025.

Strategic Shift in Production and Cost Optimization

In line with its restructuring efforts, Albemarle plans to reduce its capital expenditure (capex) by $100 million, bringing the total capex for 2025 to between $700 million and $800 million. This follows a reduction of more than $450 million in capex during 2024. Albemarle's shift from lithium hydroxide to lithium carbonate production in Qinzhou is part of its strategy to optimize its production network.

Approximately 50% of Albemarle's energy storage products are sold through long-term contracts that are indexed and typically last for 2-5 years. These contracts include price floors and a 3-month price lag, helping the company maintain stability in an uncertain market.

Kent Masters, Albemarle's Chairman and CEO, stated, “We are taking decisive actions to reduce costs, optimize our conversion network, and increase efficiencies to preserve our long-term competitive position.”

Albemarle Embraces Spot Sales Strategy as Tariff Impact Remains Limited

Albemarle

U.S. Lithium Giant Prioritizes Flexibility Amid Shifting Market Dynamics

Albemarle, one of the world’s leading lithium producers, has adjusted its commercial approach by leaning further into spot-oriented sales. This move reflects a strategic response to the increasingly dynamic pricing environment, particularly in China—currently the world’s largest and most liquid lithium market.

During the company's Q4 earnings call, Executive Vice President and Chief Commercial Officer Eric Norris confirmed the transition. “Our portfolio of contracts has become a little bit more spot-oriented,” Norris stated, highlighting the influence of China’s spot-driven structure on Albemarle’s evolving sales mix.

Contract Mix Balances Stability and Market Responsiveness

Currently, Albemarle sells approximately 50% of its lithium volumes under long-term contracts with floor pricing. The remaining sales are made through shorter-term agreements and spot transactions. This blend provides pricing stability while allowing the company to capture upside during market rallies.

CEO Kent Masters added that roughly half of Albemarle’s portfolio now tracks spot index pricing, affirming analysts’ assumptions. Although the firm also participates in spodumene sales and opportunistic bidding events, this spot focus allows Albemarle to remain competitive amid market fluctuations.

Tariff Exposure Minimal but Customer Impact Under Watch

Regarding new tariffs on lithium and other critical materials, Albemarle expects limited direct exposure. “We don't ship significantly from China to the U.S.,” said Masters. “It will impact our customers more than it will impact us directly.”

However, Albemarle remains vigilant about indirect consequences. The company is closely monitoring how tariffs may influence customer behavior, supply chains, and regional pricing trends. This approach underscores Albemarle’s commitment to managing market risk while maintaining commercial flexibility.

Albemarle to Cut Workforce Amid Falling Lithium Prices

Albemarle

Albemarle, the world's largest lithium producer, announced plans to reduce its global workforce by 6-7% in response to falling lithium prices and a $1 billion loss in the third quarter of 2024. The move aims to enhance cost efficiency and stabilize operations amidst ongoing market volatility.

Cost-Cutting Measures and Market Impact

The workforce reduction is expected to save Albemarle $300-400 million annually through redundancies, streamlined management roles, increased productivity, and optimized manufacturing costs. These savings are in addition to $100 million of cost-saving measures already implemented earlier this year.

Albemarle also revealed plans to halve its investment spending for 2025, with allocations reduced to $800-900 million. Despite the challenges, the company reaffirmed its average lithium carbonate equivalent price forecast of $12-15/kg for 2024, assuming recent pricing trends persist.

Lithium Market Trends and Key Developments

The lithium market has faced a sustained price decline since November 2022, though occasional bullish news has provided brief reprieves:

• Increased EV Sales: The U.S. reported higher electric vehicle sales in the recent quarter, boosting demand for lithium.
• Production Cuts: Chinese producer CATL halted extraction at its Jiangxi mine, reducing monthly lithium carbonate output by 8%.
• Record Lithium Acquisition: Mining giant Rio Tinto agreed to acquire Arcadium Lithium for $6.7 billion, marking the largest deal in the lithium sector’s history.

Albemarle's strategy reflects broader market adaptations as producers adjust to fluctuating demand and price pressures. The company's proactive measures highlight its commitment to maintaining leadership in the lithium industry while navigating economic challenges.

Albemarle Announces Cost Cuts Amid Low Lithium Prices

US-based lithium producer Albemarle Corporation has announced the launch of cost-saving measures as well as halting some operations at one of its processing sites in Australia, as low prices for lithium persist. The company has decided to take action to preserve Albemarle's resources as well as to try to optimize its global network of mines and processing facilities, improve competitiveness, and reduce capital intensity, it said in its second-quarter results today.

It will initially adjust operations at its Kemerton lithium hydroxide processing plant in Australia, stopping activities at train 3 while idling production at train 2 but continuing production at train 1. The company expects to give more details on this operational review in its results for the third quarter.

"These actions showcase our deeper focus on cost and operating discipline," said Albemarle chief executive Kent Masters. "There is no question the global energy transition is underway. However, the pace of industry changes is dynamic."

The company said it expects lithium prices to average around $15/kg LCE for the whole of 2024, despite prices being much lower at present.

The company said EV demand growth in the US and Europe had moderated "substantially," and changes to the product mix of its downstream customers also weighed on demand for lithium. Masters said larger-than-consumer uptake of plug-in hybrid EVs (PHEVs) over pure battery EVs (BEVs) had a negative impact on lithium demand, due to the smaller batteries. Oversupply in China also contributed to falling prices.

"At current Chinese spot pricing, we believe and are hearing from the market that many non-integrated producers are unprofitable," said Kent. "Current pricing is well below the incentive pricing required for Western greenfield lithium projects."

He added geopolitical developments and the decision by the US Department of Energy to consider mines owned in part by China as foreign entities of concern will impact its Australian business. Albemarle co-owns the world's largest lithium mine, Greenbushes, with Tianqi lithium, a Chinese producer.

"We continue to anticipate 2.5 times lithium demand growth from 2024 to 2030. Additionally, we see battery size growing over time, driven by technology developments and EV adoption," said Kent.

Abaxx to Launch Lithium Futures Backed by Albemarle in 2025

Abaxx

Physically Deliverable Lithium Carbonate Contracts to Trade in Singapore, Rotterdam, and Baltimore

Albemarle Named Sole Approved Brand and Producer

Abaxx Technology, a Singapore-based financial software and market infrastructure company, will launch three regional physically deliverable lithium carbonate futures contracts in March 2025. Albemarle, a global leader in lithium production, will serve as the only approved brand and producer for these contracts.

Global Lithium Futures to Enhance Price Discovery and Transparency

Each contract is USD-denominated and operates on a Delivered at Place (DAP) basis. The contracts represent one metric tonne of lithium carbonate and allow for physical delivery at major international ports: Singapore, Rotterdam, and Baltimore. This setup will improve price transparency and facilitate efficient global lithium trade, especially as demand for battery metals continues to surge.

Albemarle US is listed as the approved producer, and Albemarle La Negra as the approved brand across all contracts. Trading will commence on March 7, 2025, giving market participants a new tool to manage lithium price risk amid fast-changing supply and demand dynamics.

Abaxx Expands Battery Metals Offering on Its Commodity Exchange

Abaxx Technology operates the Abaxx Commodity Exchange and Clearinghouse, which already offers a range of contracts in energy, environmental, and battery metals markets. With the addition of physically deliverable lithium futures, Abaxx is positioned to become a key platform for battery supply chain participants seeking robust hedging solutions.

Australia's Liontown Meets Lithium Output Target Amid Market Challenges

Australian lithium producer Liontown Resources has achieved a significant milestone by producing its first spodumene concentrate from the Kathleen Valley project, meeting its mid-2024 goal despite earlier financial difficulties. The first shipment of spodumene concentrate is scheduled for later in the current quarter (July-September), according to an announcement on July 31.

Liontown recently secured a short-term 10-month offtake agreement with Beijing Sinomine International Trade. Additionally, long-term contracts with major auto manufacturers and battery producers such as Tesla, LG Energy Solution, and Ford are expected to commence as the Kathleen Valley project reaches full production capacity over the next year.

The Kathleen Valley project is ramping up to a capacity of 3 million tons per year, a target anticipated by the end of the first quarter of 2025. Liontown also plans to expand this capacity to 4 million tons per year. The company’s funding deal with LG Energy Solution will facilitate early works to "preserve" the expansion option with a timeline set for 2027.

This new supply of lithium from Liontown comes amid a market downturn with ongoing concerns about oversupply. Australian financial services firm Macquarie has projected a potential slowdown in the pace of Australian production growth due to unencouraging price conditions.

In a related development, US lithium producer Albemarle announced on July 31 a halt to the construction of train 3 at its Kemerton lithium conversion facility in Western Australia, citing "ongoing industry headwinds" as part of a comprehensive review of its cost and operating structure. Each train at the facility has a processing capacity of 25,000 tons per year of lithium hydroxide. Albemarle will also place train 2 into care and maintenance while focusing on increasing production from train 1.

Commenting on Albemarle’s decision, Australia’s federal resources minister Madeleine King urged bipartisan support for the country's critical minerals and rare earths industry. King also called on political opposition parties to support Australia’s critical minerals production tax incentive to bolster local industry and jobs.

Chile’s Value-Added Lithium Strategy Faces Setbacks Despite New Tender

Albemarle

Preferential pricing fails to attract long-term downstream lithium investments

Chile's value-added lithium strategy continues to struggle, as the country launches a new tender targeting downstream lithium manufacturing. Despite offering preferential prices through U.S.-based Albemarle’s supply, past efforts to anchor lithium battery production in Chile have faltered due to investor withdrawal and bureaucratic hurdles.

Chinese companies exit amid weak market and contract uncertainty

On 30 April, Chile’s economic development agency Corfo issued a call for proposals to manufacture lithium-based products locally. The offer involves 9,599 tonnes/year of lithium carbonate equivalent (LCE) from Albemarle’s operations in the Atacama region, with volumes set to rise annually until the lease ends in 2043. However, Chinese firms BYD and Yongqing Technology—winners of a 2022 tender—recently exited the program, citing weak global lithium prices and the short remaining duration of SQM’s contract, which ends in 2030.

Bureaucracy and pricing formula disputes hinder industrialization

Government delays in allocating fiscal land for facilities and unresolved pricing methodology disputes have consistently derailed investment plans. Chile also failed to advance a 2018 initiative when three selected companies abandoned their projects due to disagreements over the preferential pricing mechanism. These repeated breakdowns raise concerns about the long-term viability of Chile's value-added lithium strategy.

The Metalnomist Commentary

Chile’s ambitions to move up the lithium value chain face structural and market barriers. Without streamlining regulatory procedures and securing long-term offtake confidence, the strategy risks remaining stuck at the raw material stage—even as global EV demand grows.

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.

U.S. Accelerates Permits for Lithium and Copper Projects to Boost Critical Mineral Supply

USGS

New federal initiative backs 10 strategic projects under Trump’s domestic mining push

The United States government has launched an aggressive effort to expedite permits for critical mineral production, selecting 10 high-impact projects for priority review. These projects include key lithium and copper sites in Nevada, Arizona, and Arkansas.

Federal officials are working to streamline environmental reviews and approvals, aiming to reduce America’s dependence on foreign mineral imports. The initiative follows President Donald Trump's executive order from March 20, directing agencies to support mineral self-sufficiency by fast-tracking projects listed by the National Energy Dominance Council (NEDC).

Notably, selected ventures include Standard Lithium and Equinor’s South West Arkansas lithium site, Albemarle’s Silver Peak operation in Nevada, and the Rio Tinto–BHP Resolution Copper project in Arizona. These projects vary in development stages but share strategic value in bolstering the domestic supply of energy-critical metals.

The Federal Permitting Dashboard will track and publish permitting schedules for these projects, increasing transparency and setting clearer timelines for developers. The U.S. Geological Survey’s list of 50 critical minerals informs the selection, though minerals like copper, uranium, potash, and gold are also included in the effort.

This push highlights Washington’s recognition that a secure and resilient critical minerals supply chain is essential to economic stability, national defense, and the transition to clean energy.

Chile Lithium Exports Remain Flat in 1Q Despite Asian Rebound

Chile Lithium

European Slowdown Offsets March Recovery

Chile’s lithium exports stayed flat in the first quarter of 2025, totaling 67,200 metric tonnes of lithium salts. This matched the previous quarter, though it was 11.2% higher than the same period in 2024.

The stagnation stemmed from weak February volumes caused by soft demand in Europe and oversupply in China. LCE exports in February plunged 25% below the six-month average to 16,700t amid China’s ample inventories.

However, March brought a rebound as Asian buying resumed. Chile exported 23,000t in March alone, up 37% from February levels.

Global Trade Dynamics Reshape Demand Landscape

Belgium, once a key buyer, cut its imports by 67% year-on-year. This followed Umicore’s decision to halve cathode output in 2025 due to a 30% drop in battery material sales.

Meanwhile, China reclaimed its role as the dominant importer, accounting for 72% of Chilean lithium exports. South Korea also boosted its intake by 21%, importing 11,400t in the quarter — partly filling the gap left by Europe.

With US tariffs on Chinese battery packs nearing 200%, South Korea and Japan may gain favor in the US supply chain. This shift could raise their demand for Chilean lithium in coming months.

Uncertainty Clouds Outlook Despite Rising Production Targets

Chile aims to produce 305,000t of LCE in 2025, up 16% from last year, according to Cochilco. Yet, current export volumes suggest a 36,000t shortfall unless demand surges later this year.

The evolving global trade policy — especially under the Trump administration — may further disrupt Chile’s lithium trade. Producers face the challenge of aligning rising production with increasingly fragmented global demand.

The Metalnomist Commentary

The flat start to 2025 shows how vulnerable Chile’s lithium sector is to global policy shifts and EV market volatility. While Asia provides a buffer, Europe’s retreat and US tariffs create strategic uncertainty. Producers like SQM and Albemarle must now navigate not just markets — but geopolitics.

Saudi Aramco and Ma'aden Forge Path into Lithium Extraction with New Joint Venture

Saudi Aramco

The Entry of Oil Giants into Lithium Exploration

Saudi Arabia's oil titan, Aramco, in collaboration with Ma'aden, the premier mining entity in the Middle East and North Africa, has unveiled a significant venture into lithium extraction. This partnership marks a pivotal shift, integrating Aramco's expansive drilling technology and financial prowess with Ma'aden's mining expertise. The focus of this joint venture will be on areas within Saudi Arabia that exhibit lithium concentrations as high as 400 parts per million—figures mirroring those of the U.S. Smackover formation, known for attracting investments from global oil leaders like ExxonMobil.

The Impact on the Lithium Market

With this venture, Aramco positions itself as a formidable player in the lithium industry, potentially reshaping market dynamics currently dominated by established producers such as Albemarle. According to Joe Lowry, a renowned independent analyst and host of the Global Lithium podcast, this shift could see major oil and mining companies overtaking traditional lithium leaders by the early 2030s.

A Vision for Future Lithium Demand

Slated to commence production in 2027, the joint operation aims to harness Aramco’s leading-edge technology and Ma'aden’s operational capabilities. Nasir K Al-Naimi, upstream president at Aramco, highlighted the venture’s intention to leverage their combined resources and knowledge. The goal is to meet the soaring global demand for lithium, essential for various technologies, notably electric vehicle batteries, and to support Saudi Arabia's economic diversification efforts.

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.

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.

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.

US Tariffs May Spur Argentina Lithium Salts Production

US Tariffs

Tariff Exemptions Favor Lithium Raw Materials, Not Finished Batteries

The US has exempted lithium carbonate and lithium hydroxide from its newly announced tariffs, creating a possible boon for Argentina's lithium sector. While raw lithium salts escape extra duties, finished battery imports face steep tariffs: 64.9% for China, 24% for Japan, and 25% for South Korea.

This disparity aligns with US efforts to localize battery manufacturing, a movement accelerated by the Inflation Reduction Act under President Biden. With at least 10 new battery factories coming online in the US this year, the demand for lithium raw materials is surging.

Argentina’s Brine Lithium May Fill the US Supply Gap

The US faces a bottleneck in domestic lithium production and processing. Currently, Albemarle’s Silver Peak mine is the only active operation, producing just 5,000t/yr of technical-grade lithium carbonate, which lacks the purity needed for EV batteries.

As a result, the US will increasingly depend on lithium imports, especially battery-grade salts. Argentina, with its low-cost brine operations, may become a preferred supplier if its projects can consistently meet battery-grade specifications.

Brine operations, while slower to ramp up than hard-rock mining, are cheaper to operate and typically more cost-competitive over time. Argentina also offers a low 3% royalty tax, compared to Chile's 40% ceiling, enhancing its competitiveness.

Global Lithium Supply Chains May Shift Toward South America

Countries like Australia and Brazil, which mine spodumene, rely heavily on China for conversion, placing them in a higher tariff category. These spodumene-dependent nations now face at least 20% US tariffs due to their reliance on Chinese refining infrastructure.

Meanwhile, Argentina’s direct-to-battery-grade production strategy may give it an edge.

“All of Argentina’s lithium projects go to battery grade,” said Daniel Gonzalez, Argentina’s vice-minister of energy and mining.

If Argentina proves its capability at scale, the country could secure a dominant role in North America's clean energy transition, especially as the US reorients trade relationships in critical minerals.

The Metalnomist Commentary

With tariffs redrawing global battery supply lines, Argentina’s brine-based lithium sector is now a strategic wildcard. If proven at scale, it could shift market share away from spodumene producers tied to China—and bring Latin America deeper into the heart of US industrial planning.

Easpring Launches Lithium CAM Production in Finland to Supply European Battery Market

Finnish Battery Group

Joint Venture with Finnish Minerals Backs Strategic CAM Investment in Kotka

Beijing Easpring has initiated lithium CAM production in Finland, targeting Europe’s expanding battery manufacturing sector. The new facility in Kotka, southeast Finland, is being developed through a joint venture with Finnish Minerals Group (FMG) and its subsidiary Finnish Battery Chemicals (FBC). The project, valued at €800 million, marks a pivotal step in establishing localized cathode active material (CAM) production in the EU.

500,000t Capacity Aims to Meet Surging European Battery Demand

The facility will produce 500,000 tonnes/year of CAMs, including 200,000 tonnes of NCM and 300,000 tonnes of LFP/LMFP. The first phase targets 60,000 tonnes of NCM, aligning with growing EV demand and localized supply strategies. While the launch date remains undisclosed, Easpring emphasized its commitment to sustainability and innovation in lithium CAM production in Finland.

Strengthening Finland’s Battery Value Chain and Industrial Sovereignty

The investment strengthens Europe’s ability to produce battery-grade materials domestically, reducing reliance on imported inputs. FMG CEO Matti Hietanen highlighted the project's importance to Finland’s battery value chain, while Easpring Chair Chen Yanbin noted its role in setting global CAM standards. The company already supplies major OEMs including SK On, LGES, and Samsung SDI, and sources materials from CNGR, Albemarle, and Huayou Cobalt.

The Metalnomist Commentary

The move to localize lithium CAM production in Finland aligns with Europe’s EV supply chain autonomy goals. Easpring’s investment marks a strategic pivot toward resilient, regional battery materials manufacturing that could reshape EU-China industrial partnerships.

Tianqi Lithium Boosts Lithium Salts Output Despite Lower Spodumene Production

Tianqi Lithium

Tianqi Lithium increased chemical lithium output in 2024, balancing weaker spodumene concentrate production from its Australian operations.

Lithium Chemical Production Surges at Anju Facility

Chinese producer Tianqi Lithium reported a 39% increase in lithium salts output in 2024, reaching 70,715 tonnes. This includes lithium carbonate, hydroxide, chloride, and metal produced across China and Australia. The ramp-up at the Anju factory in Sichuan province drove most of the increase, bringing the company’s global chemical capacity to 91,600 t/yr.

Meanwhile, Tianqi canceled phase two of its Kwinana lithium hydroxide plant in Australia due to economic concerns. The first phase, with 24,000 t/yr capacity, remains in operation. Tianqi aims to reach 122,600 t/yr in future chemical capacity.

Spodumene Output Falls, but Resources Remain Strong

In contrast, spodumene concentrate output fell by 7.4% to 1.41 million tonnes at the Greenbushes mine in Australia. Tianqi and IGO’s joint venture owns 51% of Greenbushes, with Albemarle holding the other 49%. Despite the dip, Greenbushes remains the world’s largest and lowest-cost hard rock lithium mine.

Tianqi plans to start production at a 520,000 t/yr Plant 3 project in October 2025, aiming to expand its spodumene processing capabilities.

Meanwhile, Greenbushes’ total lithium resources held steady at 440 million tonnes, or 16 million tonnes LCE. However, proven reserves dipped to 8.1 million tonnes LCE from 8.5 million the year before.

The Metalnomist Commentary

Tianqi Lithium’s focus on ramping up downstream capacity shows a strategic pivot toward value-added products. While mining volumes fluctuate, control over refining capacity secures margin stability amid global lithium price volatility.

US Accelerates Critical Mineral Project Permits to Boost Supply Chain Independence

US Critical Mineral

Critical Mineral Project permits

The US government is fast-tracking critical mineral project permits under a new federal initiative to expand domestic mineral production. This strategic move prioritizes lithium and copper projects vital to the country’s energy and defense supply chains.

The first 10 projects include ventures by Standard Lithium, Equinor, Albemarle, Rio Tinto, and BHP. These developments are in various permitting stages at both federal and state levels, aiming for quicker environmental reviews and project approvals.

National Energy Dominance Council to Oversee Permitting Process

President Donald Trump’s executive order, issued on 20 March, directs agencies to list projects for the National Energy Dominance Council (NEDC). These projects will be added to the Federal Permitting Dashboard to ensure transparency in authorization timelines.

By 2 May, the first permitting schedules will go live on the dashboard. New projects will be added in coming weeks. The goal is to streamline timelines and reduce bureaucratic delays that have historically slowed down mine development.

Expanding the Scope of Critical Mineral Classification

The initiative covers all 50 critical minerals defined by the US Geological Survey (USGS), including lithium, rare earths, and graphite. However, it also includes other strategic materials like copper, uranium, gold, and potash, despite their exclusion from the USGS list.

This broader scope reflects growing demand across clean energy, semiconductor, and defense sectors. By prioritizing critical mineral project permits, the US aims to reduce foreign dependence and enhance national security.

 

The Metalnomist Commentary

The fast-tracking of critical mineral project permits reflects Washington’s urgency in reshoring vital mineral supply chains. If implemented efficiently, this initiative could redefine global mineral trade routes and industrial competitiveness.