SHANGHAI, Apr 6 (SMM) - The actual cost of each enterprise is different, the industrial average cost is lowered by the companies extracting lithium from salt lake brine. The profits of companies producing lepidolite and integrated with lithium carbonate capacities are relatively high, and the profits of those producing spodumene are even higher. SMM data for Q1 2023 showed that:
- The cost of battery-grade lithium carbonate produced from salt lake brine was 40,000-50,000 yuan/mt (including the purification cost from industrial-grade lithium carbonate carbon to battery-grade lithium carbonate);
- The production capacity of lithium carbonate produced by using self-produced raw spodumene was about 10,000-20,000 mt of LCE, and the cost was nearly 60,000 yuan/mt;
- The production capacity of lithium salt produced by self-produced lepidolite was 50,000-60,000 mt, corresponding to an average cost of 60,000-80,000 mt/mt;
- The production cost of lithium carbonate for enterprises purchasing lepidolite concentrate stood at around 200,000-250,000 yuan/mt. But as the price of raw ore went down, the cost also dropped The operating production capacity is about 50,000-60,000 mt of LCE;
- The production capacity of lithium carbonate using purchased spodumene concentrate is the highest and currently stands at some 100,000-130,000 mt. The cost is roughly between 300,000-320,000 yuan/mt based on the current price of spodumene concentrate. The decline in ore prices also drove down the lithium carbonate cost. Yet, the decline in ore prices in the first quarter was significantly lower than that of lithium carbonate. SMM statistics of the companies purchasing spodumene concentrate include the leading lithium salt factories with equity in overseas mines, which resulted in lower settlement price of spodumene concentrate and the production cost than the market average price.
