Lithium carbonate prices to continue rally amid falling inventories

According to Reuters on August 28, the Democratic Republic of Congo’s state-backed artisanal cobalt buyer, Entreprise Générale du Cobalt (EGC), has fully utilized 100% of its allocated cobalt export quota. So far this year, EGC has exported 3,995 tonnes of contained cobalt and around 1,400 tonnes of copper. While some producers have been unable to fully use their quotas due to complex export procedures, EGC has completed its entire allocation. EGC currently sells cobalt mainly through Trafigura, Mercuria and Traxys, and plans to strengthen direct cooperation with battery manufacturers, automakers and other end-users to expand the market for traceable artisanal cobalt. Artisanal and small-scale mining accounts for about 15%-25% of cobalt production in the DRC. EGC aims to improve traceability through formalized management and meet international responsible sourcing requirements. It is currently working with five mining cooperatives, with another 12 partnerships under development. On logistics, EGC recently made its first shipment through the Lobito Corridor, exporting 587 tonnes of cobalt and 500 tonnes of copper cathodes. Transit time was around five days, significantly shorter than about 28 days via Dar es Salaam and more than 30 days via Durban, helping improve export efficiency and supply-chain flexibility.

Chile, Argentina, Bolivia and Peru signed a joint declaration on strategic minerals on August 28, seeking to strengthen regional cooperation in critical mineral resources including lithium and copper. The four countries plan to promote cooperation in mineral development and investment and seek technical and financial support from multilateral institutions. The initiative also aims to encourage collaboration between the public and private sectors in research, innovation and capacity building. With the four countries collectively holding significant global copper and lithium resources, the initiative is aimed at strengthening South America’s position in global energy-transition mineral supply chains and enhancing the region’s attractiveness as a long-term supplier of critical minerals.

Liontown Resources has completed open-pit mining at its Kathleen Valley lithium operation in Western Australia and has transitioned the project to a fully underground mining operation. The company is targeting a mining run rate of approximately 2.8 million tonnes per annum by the end of FY27 and expects to make a final investment decision on the next phase of the Kathleen Valley expansion next month. During FY26, Kathleen Valley produced 391,992 dry metric tonnes of spodumene concentrate and shipped 381,997 dry metric tonnes, with both production and shipments averaging 5.1% Li₂O. Liontown has also commenced selected early works and procurement of long-lead equipment for the expansion, including a 5.5 MW ball mill, supporting higher processing throughput and improved recovery.