Relatively little focus is given to the complex relationship between domestic brine, mineral conversion (using imported and locally-sourced minerals) and imported lithium compounds, despite China being the world’s largest lithium consumer and a key growth market.
This is because unravelling the domestic supply situation is perhaps as challenging as quantifying future lithium demand from automotive batteries.
Chinese imports of mainly technical grade lithium carbonate in H1 2010 have already exceeded the 2,390 tonnes imported for the whole of 2009 (see Figure 1). Average values of imports have fallen to $4.60/kg from $5.30/kg in 2009 suggesting the price reductions enacted by South American producers in late 2009 are starting to filter through to the market (IM November 2009: Price cuts give lithium rude awakening).
China hopes to significantly reduce its vehicle emissions and resulting smog through the advent of electric vehicles. The lithium industry...