Lithium Miners Chart Expansion Even as Prices Weaken

Dow Jones12:47

0447 GMT - Lithium miners are pressing ahead with expansions even as prices retreat. Outside of China, there's a feeling that "this is a short-term, sentiment-led dip that is not supported by fundamentals," says Benchmark's Adam Megginson. "The direction of travel right now is definitely toward supply expansion." For now, only the highest-cost suppliers--like those selling so-called direct shipping ore that is minimally processed and costly to transport--risk needing to cut back, he says. But he says others could face increased pressure if the price drop continues. Lithium carbonate is down by more than 20% since early September at $15,450 a metric ton, according to Benchmark. Spodumene concentrate is down by nearly 40% over the same period at $1,385 a ton.

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