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.

SNEP lithium salts plant starts production to meet China’s EV battery demand

Sichuan New Energy Power

SNEP lithium salts plant has begun production in Sichuan to supply battery makers. The SNEP lithium salts plant adds 30,000 t/yr of battery-grade capacity. As a result, the SNEP lithium salts plant strengthens China’s lithium supply chain.

Capacity, products, and partners

SNEP commissioned its Mianzhu facility with 30,000 t/yr nameplate capacity. The plant will produce 15,000 t/yr lithium carbonate and 15,000 t/yr lithium hydroxide. The project cost Yn1.49bn and moved from build to product launch in 16 months. Eve Energy and Svolt each hold 24.5pc, aligning offtake with leading cell makers. SNEP retains a 51pc operating stake to anchor strategy and quality.

Upstream integration and market context

SNEP advances vertical integration through the Lijiagou spodumene project. That mine targets 180,000 t/yr of concentrate once ramped. Meanwhile, SNEP’s Dingsheng unit adds 15,000 t/yr salts capacity in Sichuan. China’s EV and storage sectors keep expanding, supporting lithium demand. However, price volatility persists as new supply enters the market.

Rising domestic capacity aids cost control and security of supply. Battery-grade hydroxide supports high-nickel chemistries for long-range EVs. Carbonate supports LFP cells for mass-market cars and stationary storage. Therefore, diversified output improves resilience across chemistries. Rapid commissioning also signals improving Chinese processing know-how.

The Metalnomist Commentary

This commissioning tightens links between upstream spodumene and downstream cathode supply. Watch ramp efficiency, product qualifications, and offtake pacing into 2025. If Lijiagou stabilizes, SNEP could hedge input risk and sustain margins across cycles.

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.

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.

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.

Xinjiang Nonferrous in China Begins Lithium Carbonate Production

Lithium Carbonate

Xinjiang Nonferrous Metal, a state-owned producer in China, has commenced lithium carbonate production at a facility located in the Hetian area of northwest China's Xinjiang region.

This project, with a designed capacity of 100,000 tons per year for lithium salts, will be developed in two phases. The initial phase includes the production of 30,000 tons per year of lithium carbonate, 30,000 tons per year of lithium hydroxide, and 15,000 tons per year of lithium chloride.

Construction of the first phase began in July of last year, and by the end of May, the company had produced its first batch of qualified products from the 30,000 t/yr lithium carbonate line. The goal for this year is to produce 12,000 tons.

Details regarding the construction timelines and launch dates for the second phase, which will produce 25,000 tons per year of lithium salts, remain undisclosed.

Xinjiang Nonferrous is developing an integrated facility encompassing mining, separation, and processing, with the capacity to process 3 million tons of lithium ore annually to produce 600,000 tons of high-grade lithium concentrate. The company plans to commence mining operations in the coming months, aiming for an annual production of 130,000 tons of concentrate this year.

In 2019, the company acquired exploration rights for rare metals in the Hetian area for 2 billion yuan ($276 million). The area's measured and controlled lithium ore resources total 50 million tons, equivalent to 700,000 tons of lithium oxide. Resource estimates are expected to increase to 100 million tons, equivalent to 1.5 million tons of lithium oxide, upon completion of exploration.

Chinese lithium producers are ramping up production both domestically and internationally to meet strong demand from the electric vehicle battery industry. Another domestic lithium producer, Hunan Anneng Ganfeng, is also set to commence production at a 25,000 t/yr lithium carbonate plant in October.

The rapid increase in output has outpaced demand growth, leading to a decline in prices. On June 19, Metalnomist assessed prices for 99.5% grade lithium carbonate at 94,500-99,500 yuan per ton ex-works, down by over 80% from their record highs in November 2022. Increased supplies from Qinghai, China's main production hub for lithium extracted from brines, have continued during the warmer summer months. Some major producers may reduce output if prices continue to fall.

Ascend, Trafigura lithium carbonate offtake deal signals growing recycled supply pipeline

Ascend Elements

Ascend, Trafigura lithium carbonate offtake deal expands the commercial pathway for recycled battery materials. Ascend Elements signed a five-year offtake agreement with Trafigura to supply lithium carbonate. Ascend, Trafigura lithium carbonate offtake deal covers 15,000 metric tonnes delivered between 2027 and 2031. Therefore, the agreement anchors a multi-year recycled lithium stream for downstream buyers.

The companies did not disclose financial terms. However, the contract length and volume provide a clearer demand signal for recycled lithium investments. Meanwhile, producers and traders are looking for stable supply that can meet battery-grade specifications. As a result, contracted recycled lithium can compete more directly with mined and brine-derived material.

Offtake contracts strengthen recycling scale-up in North America and Europe

Ascend, Trafigura lithium carbonate offtake deal supports Ascend’s growth pipeline across two regions. The company is building capacity in North America while expanding its European ambitions. Meanwhile, Ascend partnered in September with GEM to collaborate on lithium-ion battery recycling in Europe. Therefore, the company is positioning for cross-regional feedstock and processing optionality.

Offtake agreements also reduce market risk for new plants. They can improve financing outcomes by showing future revenue visibility. However, execution still depends on scrap availability, logistics, and qualification cycles with cathode customers. As a result, long-term contracts often become a prerequisite for bankable recycling projects.

Battery-grade lithium salts from scrap move closer to mainstream supply chains

Ascend recycles spent batteries and manufacturing scrap to produce precursor cathode active materials and battery-grade lithium salts. This approach can shorten supply chains while reducing exposure to upstream mining disruption. Meanwhile, policymakers and OEMs are pushing for circularity and localized sourcing. Therefore, recycled lithium carbonate can become a strategic procurement tool.

The 2027–2031 delivery window also matters for planning. It aligns with the period when end-of-life battery volumes rise and recycling infrastructure scales. However, quality consistency and recovery efficiency will determine real competitiveness. As a result, Ascend, Trafigura lithium carbonate offtake deal will likely be judged on delivered tonnes and specification compliance, not headline capacity.

The Metalnomist Commentary

Recycled lithium is moving from pilot narrative to contracted supply reality. Meanwhile, traders are stepping in to aggregate and de-risk new flows. Therefore, expect more multi-year offtakes as recycling shifts into a commodity-grade business.

Dazhong Mining Expands Lithium Resources at Jiada Mine

Dazhong Mining

Lithium Resources at Jiada Mine Increase Significantly

Inner Mongolia Dazhong Mining has revised higher its lithium resource estimates at the Jiada spodumene mine in Sichuan. The mine’s reserves now total 1.4842mn t of lithium carbonate equivalent (LCE) with an average grade of 1.38pc lithium oxide. This upgrade raises Dazhong’s total lithium resources across its assets to 4.72mn t LCE. The company also operates the Jijiaoshan lithium mine in Hunan province, strengthening its domestic lithium footprint.

Dazhong’s Investment in Lithium Supply Chain Expansion

Dazhong is actively expanding into downstream lithium processing and battery production. The firm is building lithium carbonate and cathode active material production lines, alongside lithium-ion battery plants in Hunan, with an investment of 16bn yuan ($2.2bn). It also plans to develop a large-scale complex in Inner Mongolia with 40,000 t/yr lithium carbonate, 40,000 t/yr lithium salts, 250,000 t/yr lithium iron phosphate, 100,000 t/yr artificial graphite anode material, and 10 GWh/yr lithium-ion batteries. These projects highlight China’s ambition to dominate the entire lithium value chain.

Lithium Market Pressures Despite Long-Term Demand

The lithium market remains oversupplied, pushing prices to multi-year lows despite robust long-term demand forecasts. Chinese lithium carbonate prices are currently at Yn59,800-61,000/t ex-works, down 89pc from the November 2022 peak of Yn561,000-576,000/t. Rising supply from Chinese producers, including new capacity expansions like Dazhong’s, has weighed on spot prices. However, strong demand from electric vehicles, energy storage systems, and emerging battery technologies is expected to support recovery in the medium term.

The Metalnomist Commentary

Dazhong Mining’s resource upgrade and heavy downstream investments underline China’s strategy to secure leadership across the lithium supply chain. While today’s oversupply keeps prices depressed, structural demand from EVs and storage solutions suggests that projects like Jiada will be vital in balancing the global market in the next decade.

Ganfeng Launches Mariana Lithium Project, Expands Global Lithium Supply Chain

Ganfeng Lithium Project

China’s Ganfeng Accelerates Lithium Production Across Argentina, Mali, and China

Ganfeng Lithium has officially begun production at its Mariana lithium chloride plant in Argentina's Salta province, strengthening its global lithium supply network. The company launched operations on February 12, marking a significant milestone in its South American investment strategy.

The Mariana project’s first phase features an annual capacity of 20,000 tonnes of lithium chloride. Ganfeng plans to rapidly scale output upon phase completion. Its subsidiary, Litio Minera Argentina, owns 100% of the project, which holds a total lithium resource of 8.12 million tonnes of lithium carbonate equivalent (LCE).

Ganfeng Expands Global Lithium Footprint with Multi-Continent Strategy

Beyond Mariana, Ganfeng is aggressively scaling its global lithium production. In Argentina, the Cauchari-Olaroz project ramped up output from 6,000 tonnes in 2023 to 25,400 tonnes in 2024. The site targets 30,000–35,000 tonnes of lithium carbonate production in 2025. In Mali, the Goulamina spodumene mine began first-phase operations in December 2024.

In China, Ganfeng has established refining capacities totaling 50,000 t/yr for lithium carbonate and 100,000 t/yr for lithium hydroxide. The company opened a 45,000 t/yr lithium salts plant in Sichuan and launched initial production at a 25,000 t/yr lithium carbonate facility in Hunan’s Chenzhou city through its joint venture Hunan Anneng Ganfeng.

Chenzhou Mega Project Sets New Benchmark for Lithium Refining in China

Anneng Ganfeng plans to invest ¥7 billion (US$960 million) into a 150,000 t/yr lithium carbonate complex in Chenzhou. This project will roll out in three phases, with the initial 50,000 t/yr phase already under construction. These efforts solidify China’s position in downstream lithium conversion and reflect Ganfeng’s ambition to control the full value chain from resource to battery-grade materials.

Ganfeng’s total global resource investment now exceeds 79.59 million tonnes LCE. With assets in Argentina, Mali, China, Australia, Mexico, and Ireland, the firm remains a dominant force in both lithium brine and spodumene extraction.

Sinomine Lithium and Copper Expansion Targets Zimbabwe and Zambia Growth

Sinomine Resources

Sinomine lithium and copper expansion is accelerating as the Chinese miner prepares to raise up to 5.2bn yuan to fund new battery metals, copper and specialty metals projects. The targeted share placement will support projects in Zimbabwe, Zambia and Jiangxi province.

Sinomine lithium and copper expansion reflects the company’s move from a lithium-focused growth story into a broader multi-metal platform. The company entered lithium through the Bikita mine in Zimbabwe in 2021 and added copper exposure through its 65% stake in Zambia’s Kitumba project in 2024.

Sinomine lithium and copper expansion also shows how Chinese mining companies are securing upstream resources while building processing capacity closer to mine sites. That strategy is becoming more important as resource-rich countries push for more domestic value addition.

The fundraising plan will support a 100,000 t/yr lithium sulphate plant in Zimbabwe, the Kitumba copper project in Zambia, and a 2,000 t/yr caesium and rubidium products project in Jiangxi.

Kitumba Copper Project Strengthens Sinomine’s Diversification

The Kitumba copper project is central to Sinomine’s move into copper. Development is advancing through equipment procurement, civil works and installation, with trial concentrator production targeted by the third quarter of 2026.

Full concentrator commissioning is expected in the fourth quarter of 2026. Smelter trial production is also targeted for the fourth quarter, with full operations expected from the first quarter of 2027.

Kitumba’s mining and processing design capacity remains 3.5mn t/yr of ore. However, smelting design capacity has been revised down to 35,000 t/yr of copper cathode from the previous 60,000 t/yr.

At full capacity, the project is expected to average 33,000 t/yr of copper cathode and 55,000 t/yr of copper concentrate. This gives Sinomine exposure to both refined copper and concentrate flows.

The project matters because copper demand is increasingly tied to grids, electric vehicles, data centres, renewable energy and industrial electrification. Chinese miners are therefore looking beyond lithium to secure copper assets that can support long-term energy transition demand.

Zambia also gives Sinomine a strategic position in the African copper belt. The region remains one of the most important sources of copper growth, but project execution will depend on infrastructure, power, permitting and smelting economics.

Zimbabwe Lithium Sulphate Plan Moves Processing Downstream

Sinomine’s Bikita lithium operations in Zimbabwe have already ramped up after commissioning 2mn t/yr and 1.2mn t/yr expansion projects in July 2023. The projects reached designed capacity and product specifications by November 2023.

Lithium concentrate shipments to China have continued, but Zimbabwe’s policy environment is pushing Chinese lithium firms to process more material locally. The country imposed a ban on concentrate exports in February, accelerating interest in lithium sulphate production.

Sinomine’s planned 100,000 t/yr lithium sulphate plant fits that shift. Details on construction timing and commissioning have not yet been disclosed, but the strategic direction is clear.

Lithium sulphate gives producers a way to move further downstream before exporting material to China or other battery chemical markets. It also helps satisfy local value-addition requirements while preserving access to Zimbabwe’s lithium resource base.

Other Chinese battery materials companies are moving in the same direction. Huayou Cobalt shipped its first lithium sulphate cargo from Zimbabwe to China on 25 April, showing that the processing route is already becoming commercially active.

Sinomine’s specialty metals platform adds another layer. The company is a leading producer of caesium and rubidium salts, with integrated mining, processing and advanced materials capabilities.

The planned 2,000 t/yr caesium and rubidium products project in Jiangxi supports higher-value specialty materials growth. These metals serve specialised industrial, electronic and advanced technology applications.

Sinomine’s latest fundraising plan therefore points to a more integrated strategy. The company is securing lithium, adding copper, and expanding specialty metals processing while responding to changing export rules and downstream demand.

The Metalnomist Commentary

Sinomine’s strategy shows how Chinese miners are adapting to a world where resource ownership alone is no longer enough. The next advantage will come from controlling mine supply, local processing and downstream product routes across lithium, copper and specialty metals.

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

Yahua LGES Morocco Lithium Refinery: $612mn push to scale EV materials

LGES

Yahua and LGES advanced the Yahua LGES Morocco lithium refinery to secure battery-grade supply. The partners will invest $612mn in phase one. As a result, the Yahua LGES Morocco lithium refinery targets 90,000 t/yr of lithium salts at nameplate. The project underscores how the Yahua LGES Morocco lithium refinery can regionalize cathode supply chains.

Phase-one scope and capacity

The companies will build 30,000 t/yr in the first phase. Ultimately, the refinery will reach 90,000 t/yr of lithium salts. However, they did not disclose construction or launch dates. Yahua already agreed in 2023 to supply LG Chem 30,000t of lithium hydroxide over 2023–26. Therefore, the project complements existing offtake frameworks.

Why Morocco for lithium refining

Morocco offers FTA access to the US and strong industrial logistics. Meanwhile, abundant phosphate resources support LFP battery ecosystems. Chinese peers CNGR, BTR, and Huayou are also investing there. The country aims to produce 1mn vehicles in 2025, including 107,000 EVs. Consequently, local demand and export channels can anchor long-term utilization.

Morocco continues to attract upstream-to-midstream capital. As a result, LGES strengthens diversification beyond China while keeping cost discipline. The refinery also aligns with OEM sourcing strategies under evolving trade rules. Battery makers increasingly localize key steps to manage tariff and compliance risks.

The Metalnomist Commentary

The Morocco siting checks three boxes: FTA optionality, phosphate adjacency, and maturing auto clusters. Watch for feedstock strategy and conversion mix between carbonate and hydroxide. Clear timelines and ESG disclosures will determine bankability and pace.

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.

Triple Flag Acquires Royalty on Tres Quebradas (3Q) Lithium Brine Project

Triple Flag

Canadian royalty firm Triple Flag Precious Metals has secured a 0.5% revenue royalty on the Tres Quebradas (3Q) lithium project in Catamarca, Argentina, for $28 million. This acquisition highlights the growing importance of securing lithium resources, driven by the surge in global demand for battery-grade materials.

The royalty agreement grants Triple Flag a share of the total revenue generated from the sale of lithium salts produced at the 3Q site. The seller, Lithium Royalty Corp, retains a 0.9% royalty on the project, maintaining its stake in the promising venture.

3Q Lithium Project Overview

The 3Q lithium project is fully owned and operated by Zijin Mining, a major Chinese precious metals producer. Currently under construction, the project is expected to begin operations in the second half of 2025, with an initial production capacity of 20,000 metric tonnes (t) per year of battery-grade lithium carbonate.

Zijin Mining acquired the 3Q project from Neo Lithium in 2022 for $770 million and has since expressed plans to expand its capacity to between 40,000-60,000 t/yr to meet rising global demand. The 3Q project employs a conventional brine extraction process involving evaporation and precipitation, with its process plant located in Fiambalá, Argentina. The project is fully permitted, positioning it as a reliable source of high-purity lithium carbonate for the EV and renewable energy industries.

Strategic Significance

The acquisition by Triple Flag underscores the increasing focus on royalty investments in critical minerals such as lithium, which are essential for electric vehicle (EV) batteries and renewable energy storage. This deal also highlights Argentina's growing prominence as a key player in the global lithium supply chain, alongside other major lithium-producing nations.

Ascend Trafigura lithium offtake deal locks in 15,000 tonnes for 2027–2031

Ascend Elements

The Ascend Trafigura lithium offtake deal secures recycled supply for the battery chain. Ascend Elements signed a five-year agreement with Trafigura for lithium carbonate deliveries. The Ascend Trafigura lithium offtake deal covers 15,000 metric tonnes from 2027 to 2031. Financial terms were not disclosed.

This lithium carbonate offtake supports Ascend’s expansion plans. The company says the deal strengthens its North America and Europe pipeline. Meanwhile, buyers want low-carbon feedstock and secure volumes. Therefore, long-term offtake contracts are becoming a key recycling growth lever.

Offtake volumes link recycling output to global trading channels

The agreement calls for 15,000 tonnes over five years. Trafigura will take deliveries between 2027 and 2031. However, the market will watch qualification timelines and product specs. Battery recycling lithium carbonate must meet strict impurity limits for cell makers.

Ascend produces precursor cathode active materials from recycled inputs. It also produces battery grade lithium salts from spent batteries and manufacturing scrap. As a result, the Ascend Trafigura lithium offtake deal supports circular sourcing for cathode supply chains.

Europe strategy expands through GEM partnership and recycling scale-up

Ascend is building international reach through partnerships. In September, Ascend partnered with GEM to collaborate on lithium-ion battery recycling in Europe. Meanwhile, Europe needs compliant recycling capacity under tightening battery regulations. Therefore, the company can use offtake visibility to de-risk new plants and financing.

This deal also signals rising trader interest in recycled battery materials. Traders can aggregate volumes and route material to regional conversion hubs. As a result, recycled lithium carbonate may gain a clearer price discovery pathway.

The Metalnomist Commentary

Recycled lithium carbonate will compete harder as new mines ramp up after 2026. Meanwhile, offtake contracts will reward recyclers that prove consistent quality and traceability. Therefore, Ascend should publicize certification and carbon data to defend premiums.

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.

Arcadium Reports Decline in 2024 Lithium Sales and Pauses Galaxy Project Ahead of Rio Tinto Acquisition

Arcadium Lithium

Lower Realized Prices and Reduced Spodumene Output Weigh on Results as Company Prepares for Strategic Transition

Arcadium Lithium Sales Dip in 2024 Amid Softer Prices and Supply Constraints

Arcadium, the U.S.-based lithium producer formed from the Allkem–Livent merger, reported a decline in lithium product sales on a lithium carbonate equivalent (LCE) basis in 2024, along with a drop in average realized prices. The company posted net income of $131.7 million, down sharply from $330.1 million in 2023.

Arcadium sold 42,300 metric tonnes of lithium salts, including lithium hydroxide and carbonate, alongside 140,000 dry metric tonnes (dmt) of spodumene concentrate. Despite stronger lithium carbonate and hydroxide sales, total LCE volumes dipped slightly due to lower spodumene output at its Mt Cattlin mine in Australia.

Galaxy Project Paused Amid Market Weakness and Pending Rio Tinto Deal

The company has paused investment in its Galaxy spodumene project in Canada, originally planned to deliver 40,000t LCE capacity. This reflects both near-term market caution and strategic considerations as Rio Tinto advances its acquisition of Arcadium.

As a result of the pending acquisition, Arcadium will not provide 2025 guidance or hold an earnings call. The Rio Tinto deal signals ongoing consolidation in the global lithium sector as major miners seek to secure critical battery material supply.

Although 2024 volumes held relatively steady, the combination of lower prices and production adjustments significantly impacted earnings—highlighting the importance of cost discipline and portfolio optimization amid market fluctuations.

Argentina Targets $30 Billion in Annual Critical Mineral Exports

Critical Mineral

Copper and lithium to anchor Argentina’s mining surge, as foreign investors drive upstream battery-grade expansion.

Argentina aims to export $30 billion worth of critical minerals annually within the next five to seven years, according to Vice Minister of Energy and Mining Daniel Gonzalez. Speaking at CERAWeek by S&P Global in Houston, Gonzalez said the forecast hinges on lithium and copper, the country’s two most strategic resources.

The projection reflects Argentina’s emergence as a global hub for lithium production, with foreign-backed projects advancing steadily. Gonzalez emphasized the diversity of investment sources, including China, France, the UK, and the United States.

Lithium Sector Expands with Global Backing

Argentina currently hosts six operational lithium projects. Notable investors include Ganfeng Lithium (China), Eramet (France), Rio Tinto (UK-Australia), and Arcadium Lithium (US), recently acquired by Rio Tinto.

“There are no restrictions on foreign ownership,” Gonzalez noted, signaling a business-friendly regulatory environment. Most projects use brine-based extraction and are vertically integrated up to the production of battery-grade lithium salts.

Processing Capacity Grows, But No Battery Manufacturing

While lithium conversion facilities are embedded in most projects, Gonzalez acknowledged Argentina still lacks domestic battery manufacturing.

“All of their projects go to battery grade… What we don’t have is battery manufacturing. I don’t think we will have, unfortunately,” he stated.

Still, Argentina’s battery-grade lithium output positions the country as a key upstream supplier to global energy storage and electric vehicle markets. With rising demand and favorable investor terms, the nation is poised to become a top-tier player in the critical minerals supply chain.

Canada and Ontario to Fund Frontier Lithium's Conversion Plant in Thunder Bay

Frontier Lithium's

New facility to boost domestic lithium salt output and shield Ontario’s critical mineral sector from U.S. trade pressures.

Frontier Lithium, a Canadian pre-production mining firm, announced that both the Ontario provincial government and the Government of Canada plan to financially support its upcoming lithium conversion facility in Thunder Bay.

While the exact investment amount has not been disclosed, the company said the combined support will cover a “significant portion” of capital expenditures required for the project. Once completed, the facility will produce approximately 20,000 metric tonnes per year of lithium salts derived from Frontier’s PAK lithium project.

Lithium Strategy Targets U.S. Tariffs with Domestic Processing

The announcement comes amid renewed trade tensions between the U.S. and Canada. This week, U.S. President Donald Trump reimposed tariffs on Canadian exports, placing pressure on Canada's critical minerals sector.

Vic Fedeli, Ontario’s Minister of Economic Development, stated that processing lithium at home is vital to counteract U.S. tariffs. “The frontline of our battle against Donald Trump’s tariffs starts in northern Ontario,” Fedeli emphasized, citing the province’s abundant supply of critical minerals as a key advantage.

Frontier’s Thunder Bay Project Supports North American Battery Supply Chain

The Thunder Bay facility is part of Canada’s broader strategy to strengthen domestic battery materials production and reduce reliance on foreign processing hubs. With this support, Frontier Lithium will advance its role in the North American EV and energy storage supply chain.

Although Frontier has not revealed total project costs, the backing from both levels of government positions the company to secure financing and accelerate construction timelines.

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.