SHANGHAI, Dec 9 (SMM) -
Q: Will it put extra pressure on environmental protection when producing lithium carbonate with lepidolite or extracting lithium from lithium slag with transformed production lines of ceramic manufacturers?
A: For the smelting of lepidolite, due to the large amount of slag produced in the smelting process, the environmental protection pressure brought about by the reuse and proper treatment of smelting tailings should not be underestimated. At the same time, for enterprises that extract lithium from lithium slag, the pressure of environmental protection will be even greater. The industrial waste gas such as sulphide and fluoride produced when extracting lithium from lithium slag will put pressure on environmental protection, and the feasibility of comprehensive reuse of lithium slag produced after secondary roasting will be significantly reduced at present.
Q: How many ceramic manufacturers in Yichun city, Jiangxi province are switching to extracting lithium from lithium slag? What is the push behind this trend?
A: At present, there are about 40-50 production lines switching to lithium extraction in Yichun. The demand brought about by the sluggish real estate market continued to weaken, and most of the ceramic manufacturers performed poorly in terms of revenue. Meanwhile, the ceramic production is very similar to the early process of lepidolite smelting, and it is also easy to convert and transform the existing ceramic production lines. Driven by the demand for new energy, the prices of lithium salt have been skyrocketing, attracting some ceramic manufacturers to transform their production lines for higher revenue.
Q: It was mentioned earlier that the environmental protection inspection may have reduced the production by 3,000-4,000 mt of lithium carbonate equivalent (LCE). To what extent does the figure account for domestic total supply? SMM previously predicted that the shortage in the lithium market may be reversed next year. Will you adjust your forecast if you take into account the supply constraints in Yichun city?
A: The production loss accounts for about 10-15% of the domestic monthly production of lithium carbonate. On the one hand, the situation of resumption of production in Yichun is still unclear, and the problem of heavy metals in the sewage is serious, and many large lithium salt producers have been affected. If the environmental protection problem is not properly addressed, it is expected that the scope and duration of the impact will continue expand. On the other hand, the environmental protection issues caused by lepidolite smelting are far-reaching, which may bring more uncertainties to the future lithium production based on lepidolite. SMM will adjust the market supply forecast according to our constant observations.
Q: Have there been any changes in the production suspensions of lithium enterprises in Yichun city? Will you maintain the previous forecast of "3,000-4,000 mt LCE” of production loss?
A: There has been no change for now. At present, the key investigation area is still the Jinjiang River Basin, and other areas have not been involved. However, if the pollution problem continues, it may affect Jinjiang tributaries or other river basins. Yesterday, Tiancheng Lithium Industry and Xiecheng Lithium Industry under Kanglongda have resumed the production, and some enterprises are also actively preparing for the resumption of production. However, there have been enterprises ordered to be closed temporarily from time to time during this environmental protection investigation. On the whole, SMM still maintains the previous forecast of 3,000-4,000 mt LCE of production loss. SMM will keep our clients updated if there is any progress.
