Lithium carbonate prices surge as 2021 concludes; EV supply chain too unreliable

THE BIG STORY

Lithium carbonate prices surged to a new high on the final day of 2021, driven primarily by strong demand from the electric vehicle battery sector. Benchmark Mineral Intelligence's battery-grade lithium carbonate EXW China price broke $40,000 per tonne for the first time, reaching a peak of $41,925/t on Dec. 31, 2021. The assessed price ultimately landed at a midpoint of $39,250/t, approximately 485.8% above the year-ago assessed cost, according to the price reporting agency.

The global electric vehicle supply chain has become too long, costly and unreliable, according to Trent Mell, president, CEO and director of Canadian refiner Electra Battery Materials Corp. Building out metals refining and battery manufacturing in North America could help make an electric vehicle rollout more sustainable and cost-effective, Mell said.

SPOTLIGHT

Biden's infrastructure act spurs US electrical steel imports, production

U.S. imports of the type of steel used to make transformers picked up pace in 2021 as manufacturers prepared for a surge in taxpayer-infused infrastructure spending to modernize the nation's power grid. Between January 2021 and September 2021, U.S. imports of electrical steel, a critical material used in transformers across the power grid, rose nearly 150% year over year, with 35,171 tonnes of the steel product brought into the country during the nine-month period, according to the latest data analyzed by S&P Global Market Intelligence.

China will weather month-long Indonesia coal export ban

China's booming domestic coal production may help the nation weather disruptions from an Indonesian export ban and a prolonged trade dispute with Australia. China ordered domestic coal producers to boost production in 2021 amid a broader energy crisis, a move that may help China avoid a coal squeeze during Indonesia's self-imposed ban on coal exports.

Zinc market tightens amid EU power price spike, supply constraints

The zinc market is set to be tighter than expected in the first quarter thanks to surging European energy prices, supply-chain bottlenecks and spiking COVID-19 cases. With no quick fix to higher European energy prices in sight or the prospect of a swift boost in zinc supply outside Europe, the zinc market will be "pretty tight" through the first quarter, lending support to strong prices, said Tom Mulqueen, head of research with Amalgamated Metal Trading Ltd.

RESEARCH

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MARKETS AND FINANCE

Stanmore secures $625M debt facility to fund BHP Mitsui Coal stake buy

POLICY AND REGULATION

Chilean lawmakers ask court to halt bidding for lithium contracts

Wyo. governor goes head-to-head with US EPA over regional haze pollution

Top Va. officials warn against fossil fuel ban to meet clean energy goals

PROJECTS AND INFRASTRUCTURE

Fortescue buys battery-powered locomotives to transport iron ore

Firefinch, Ganfeng approve Goulamina lithium project's final investment decision

Centerra Gold in negotiations with Kyrgyz government over Kumtor seizure

OPERATIONS AND STRATEGY

BHP Group to ramp down Chilean copper mine after court's water extraction ban

MMG resumes Las Bambas copper operations in Peru as community lifts blockade

BHP cuts jobs at Cerro Colorado copper mine in Chile