Livent CEO sees difficult environment for lithium producers
2019-11-08 09:49:40 [Print]
The lithium industry is working through difficult times due to low prices for the battery metal and global oversupply concerns, though an upswing in demand should help beginning next year, Livent Corp Chief Executive Paul Graves said on Wednesday.
The company, which operates in northern Argentina, late Tuesday cut its full-year revenue and earnings forecast for the second time this year because it will delay selling about a quarter of its annual lithium hydroxide production until 2020.
While Livent and some peers sell much of their lithium on long-term contracts, they have been stung by weakening market sentiment as global supply exceeds demand by 5 percent.
Despite the uncertainty, Philadelphia-based Livent is working to cement long-term electric vehicle industry partnerships. It is delaying the shipping of 4,000 tonnes of lithium hydroxide until next year to battery makers that will not need the metal until then. Livent produced about 15,936 tonnes of lithium hydroxide in 2018.
That strategy, Graves said, is a bet that by holding high-quality lithium until it is needed, rather than risk not being able to meet demand next year, the company can maintain key relationships.
Livent primarily sells one specific type of the white metal, lithium hydroxide. Albemarle, the world's largest lithium producer, and others tend to produce both lithium hydroxide and lithium carbonate.
On Tuesday, Livent announced a deal to supply significant volumes of lithium to LG Chem Ltd. It did not provide specifics.
The company, which operates in northern Argentina, late Tuesday cut its full-year revenue and earnings forecast for the second time this year because it will delay selling about a quarter of its annual lithium hydroxide production until 2020.
While Livent and some peers sell much of their lithium on long-term contracts, they have been stung by weakening market sentiment as global supply exceeds demand by 5 percent.
Despite the uncertainty, Philadelphia-based Livent is working to cement long-term electric vehicle industry partnerships. It is delaying the shipping of 4,000 tonnes of lithium hydroxide until next year to battery makers that will not need the metal until then. Livent produced about 15,936 tonnes of lithium hydroxide in 2018.
That strategy, Graves said, is a bet that by holding high-quality lithium until it is needed, rather than risk not being able to meet demand next year, the company can maintain key relationships.
Livent primarily sells one specific type of the white metal, lithium hydroxide. Albemarle, the world's largest lithium producer, and others tend to produce both lithium hydroxide and lithium carbonate.
On Tuesday, Livent announced a deal to supply significant volumes of lithium to LG Chem Ltd. It did not provide specifics.
Lithium Hydroxide LiOH 56.5%min, Magnets 0.0001%max Delivered South Korea
Unit:USD/kg
Chna's lithium hydroxide producers; sales volume statistics by province by month
Unit: mt
