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Australian company Pilbara to reduce lithium production in June-July

Non-ferrous metallurgy

Australian lithium producer Pilbara Minerals is moderating its June and July production volumes due to delays in chemical conversion facilities facing its Chinese partners.

Australian company Pilbara to reduce lithium production in June-July

In May, Pilbara achieved its highest-ever monthly lithium concentrate production of 22,375 metric tons dry, reaching nearly 85 percent plant capacity in the first phase of its Pilgangoora project in Western Australia.

But sales in April-June faced capacity constraints at Ganfeng Lithium and General Lithium converting concentrate to lithium carbonate or hydroxide for electric vehicle and battery cathodes.

Therefore, Pilbara will operate in June and July at a lower capacity utilization to correct defects, further improve plant productivity and reduce inventory, it said. The first phase of the Pilgangoora mine, which was commissioned in the third quarter of 2018, is expected to produce 330,000 tpa of lithium concentrate with a 6% lithium oxide content.

“It's no secret that the spodumene supply market is facing certain short-term challenges as major players, including our key investors, are busy commissioning chemical processing plants in China,” said Pilbara CEO Ken Brinsden. Lithium concentrate prices fell to $ 600-640 /t, well below $ 850 /t in the first half of 2018.

“We remain confident that the lithium market remains stable, as evidenced by the growing number of agreements entered into by major car manufacturers throughout the lithium supply chain in both China and the global markets,” Pilbara said.

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