Top Lithium Producers Report Mixed Earnings
The optimistic outlook for growth in lithium demand presented by recent financial results from major lithium companies seems promising for the broader lithium industry.
The optimistic outlook for growth in lithium demand presented by recent financial results from major lithium companies seems promising for the broader lithium industry.
Last week, Rockwood Holdings' lithium business, Chemetall Lithium, announced a new lithium production facility, specifically producing butyllithium in Gujarat, India.
July sparks the one year anniversary of the launch of the first lithium ETF, the Global X Lithium ETF. Continued sophistication of innovative ETF products may one day result in additional and alternative vehicles with direct and concentrated exposure to a broader base of lithium exploration, development, production companies, or specialty battery manufacturing enterprises.
The inflationary pressure that has resulted in the increased cost to produce lithium may partially be attributed to restrictions on exports of raw materials from China. The World Trade Organization said on Tuesday that the Chinese government broke international law when it restrained exports of some raw materials.
Rockwood Holdings' Inc. (NYSE:ROC) reports price hike of up to 20% for its lithium salts, including lithium carbonate, lithium hydroxide, lithium chloride, and ithium metal battery grade, from July 1.
More than four decades following the conception of Earth Day, international interest in alternative energy sources has become a strong focus of social, political and commercial enterprise. It is not just a matter of coincidence that a significant number of electric vehicle and lithium battery technology conferences have been scheduled at this time of year.
The limited number of publicly traded companies engaged in lithium exploration and production is even more concentrated than the geographical extent of operations; however, the dynamic industry experienced some important developments which grabbed investors attention this year.
Revenues for lithium showed a considerable relative improvement recording an increase of 47.6 percent compared with last year. This demonstrates that the lithium market has improved considerably compared to the market conditions observed during 2009.
Ford Motor Company and Portland General Electric announced a collaboration to help prepare the city of Portland share information on charging needs and requirements to ensure the electrical grid can support the necessary demand for electric vehicles. The recent collaborative follows a press release from the US Department of Energy for a $2.4 billion investment to further accelerate the manufacturing and deployment of electric vehicles, batteries, and components in the US.
Last week, the top lithium mining companies urged Chile to overhaul regulation to allow them to increase output of a metal seen booming in coming years anticipating a larger scale adoption and demand of electric cars and lithium batteries. The government wants the industry to grow; however, opposition has said the state should keep its tight grip over an industry that could bring billions of dollars in revenue in the future.
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