Platts launches first daily Lithium Triangle (LiT) spot price assessment

Platts, part of S&P Global Commodity Insights, has launched a daily spot price assessment for South America lithium carbonate, effective Sept. 2, 2024.

The new Lithium Triangle (LiT) FOB assessment, which Platts understands to be the first daily assessment for the South American lithium market, complements Platts existing suite of lithium and battery metals and raw materials pricing in the Americas, Asia and Europe.

The launch responds to growing demand from market participants for increased transparency, clarity and insights regarding pricing for lithium products from South America, as the region grows its role as a global supplier.

The Lithium Triangle is a region encompassing three major salt flats in South America: Salar de Atacama in Chile, several interconnected salars in the northern region of Argentina, particularly within the provinces of Jujuy, Salta and Catamarca, and Salar de Uyuni in Bolivia. This area is well-known for its significant reserves of lithium-rich brine deposits, making it one of the most important and promising regions for lithium production globally. Bolivia’s lithium production, however, is still in early stages of development, with no current export volumes of note.

As such, the Platts Lithium Triangle (LiT) FOB assessment reflects material loading from the main ports that serve as export channels for the existing operations in these salars, including Buenos Aires, Salta, Rosario and San Lorenzo ports in Argentina, and Antofagasta, Iquique and Mejillones ports in Chile.

Chile's lithium production reached 224,998 metric tons of Lithium Carbonate Equivalent (LCE) in 2023, making it the world's second-largest producer after Australia. Argentina's lithium production for the same year totaled 43,857 metric tons of LCE. Both countries are projected to exceed the 250,000 metric tons output mark by 2025 and 2027, respectively, according to Commodity Insights.

Following market research, the new assessment specifications are as follows:

In determining the quality specification, Platts has considered feedback of a variable purity range for lithium production in the region. The LiT assessment reflects minimum purity of 99.0%, encompassing both industrial and battery-grade lithium carbonate.

Indications for other qualities and varying specifications may be normalized to align with Platts' base standard specification.

All market information reported to Platts may be considered for publication, including firm bids, offers, transactions, indications of value, as well as any other data deemed relevant to the assessment process. Platts observes direct market activity as well as the effect of movements in related markets through spread differentials, for example.

The new assessment, which follows a Brazil publishing schedule, is published on a daily basis and reflects a 4:00 pm Sao Paulo market close.

A full description of Platts assessment methodology can be found here: /content/dam/spglobal/ci/en/documents/platts/en/our-methodology/methodology-specifications/Platts-Assessments-Methodology-Guide.pdf.

The new assessment, as well as a related monthly average, will be published on Platts Nonferrous Metals Alert pages, in Platts Metals Daily, Battery Metals Market Report and in the Platts price database under the symbols listed above. The assessment will be included on pages MTL8888, PMA8888 and the monthly average on page MTL8880, alongside Platts full suite of battery metals assessments.

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