Spodumene Concentrate Prices Rose by Another $100/mt, Four Lithium-Rich Countries Propose the Establishment of Lithium Council Again

SHANGHAI, May 6 (SMM) - According to the SMM data, the spot price of spodumene concentrate (6%, CIF China) rose again yesterday, climbing to US$3,880-3,930/mt, with an average price of $3,905/mt, up $100/mt or 2.63% from the last trading day before the Labour Day. The price has risen by $1,010/mt since the end of March, an increase of 34.88%.
 The President of Mexico said that the governments of Mexico, Bolivia, Argentina and Chile, which have lithium reserves, are discussing the establishment of a council to exchange lithium exploration and mining technologies.

The concept of this council actually coincides with the concept of "lithium OPEC" disclosed by foreign media in early 2022. At that time, it was reported that the three countries with the most abundant lithium ore resources in the world, Bolivia, Argentina and Intellect, were discussing the establishment of an organization similar to the "Association of Lithium Producing Countries", that is, the concept of "Lithium OPEC". Industry insiders believe that once the "Lithium OPEC" can become a reality, the three countries with the most abundant lithium resources will implement a unified quota system for lithium mining, which is intended to maintain a reasonable and stable lithium price and maximize the economic benefits of lithium resources. .

 It is reported that the idea was first proposed by the Argentine authorities in 2011 for the purpose of controlling the price of lithium ore and preventing the overexploitation of lithium resources. However, in the process of continuous changes in the political situation of the three countries, the idea has been shelved again and again.

 Recently, as the demand for lithium resources in various countries in the world continues to rise, countries pay more and more attention to lithium resources. Mexico's Senate has passed a bill introduced by President AMLO that would give state-owned companies a priority over private investment in lithium mining. If the proposal is finally passed, oil and lithium will be listed as strategic minerals in Mexico.

Chile, the world's second-largest supplier of lithium ore, has also drafted proposals to promote the nationalization of large copper, lithium and gold mines. However, according to the latest news, the proposal has been rejected, but even so, it is enough to see that countries attach great importance to lithium resources.

On the afternoon of April 27, Pilbara BMX, the main lithium mine in Australia, held the fourth lithium concentrate auction. The auction price was finalised at $5,650/mt, setting a new record high. Compared with Pilbara’s third auction at the end of October 2021, the latest auction price achieved an increase of as much as 140%. CITIC Securities pointed out that the surge in Australian lithium concentrate auction price indicates that the tight supply in the lithium industry has not eased.