DLE Weekly delivers the latest insights on Direct Lithium Extraction (DLE) technologies, industry developments, and market trends. Stay tuned to see how DLE is shaping the future of sustainable energy.
DLE Weekly - 28 March 2025
Global Business, BICHEM Group
25,000-Ton Lithium Carbonate Project in Fujian
Fujian Zijin Lithium Element Material Technology Co., Ltd., a subsidiary of Zijin Mining (a Chinese mining giant), is making steady progress on its 25,000-ton-per-year battery-grade lithium carbonate project. Currently in the construction phase, the facility is expected to be completed and operational by December 2025. Located in the Jiaoyang Industrial Park in Shanghang County, Fujian Province, the project spans 80 acres and represents a total investment of ¥265 million. It will utilize lithium carbonate resources from Zijin Mining’s 3Q Salt Lake in Argentina and employ a carbonization and resin-based impurity removal process to produce high-consistency, high-purity battery-grade lithium carbonate. Once fully operational, the project is expected to generate an annual revenue of ¥1.99 billion.
Lithium Asset Expansion Continues Despite Market Slump
Canadian-listed American Salars is capitalizing on low lithium prices to expand its global lithium portfolio, with a strong focus on South American salt lake projects. Viewing the downturn as a strategic acquisition opportunity, the company has secured assets across multiple regions. In Argentina, it has signed an agreement to acquire a 75% stake in the Salar De Pocitos lithium brine project. In Nevada, USA, the company owns the Black Rock South lithium brine project. Meanwhile, in Brazil, it has acquired the Jaguaribe hard rock lithium project. Additionally, in Canada, the company is developing the Lac Simard lithium project in Quebec.
Chile Advances National Lithium Strategy Amid Environmental Concerns
In 2023, Chile launched its National Lithium Strategy to enhance state control and promote sustainable development. Holding 44% of global lithium reserves, the country still has significant untapped resources beyond the Atacama Salar. As part of the strategy, the government designated 26 salt flats for the Special Lithium Operation Contracts (CEOLs) and created the Network of Protected Salt Flats in 2024. Despite adopting direct lithium extraction (DLE) to reduce water usage, concerns about the environmental and cultural impacts of mining persist. With lithium prices dropping from $80,000 per ton in 2022 to under $10,000 per ton, the industry has shifted focus from expansion to efficiency. Critics argue that Chile’s policies prioritize economic gains over environmental protection, questioning the long-term sustainability of the approach.
Strong Supply Recovery Keeps Prices Under Pressure
In March, the lithium carbonate market entered its traditional peak season, but spot prices remain under pressure, with supply and demand imbalances not being particularly prominent. On the supply side, China’s lithium carbonate production reached 64,100 tons in February, a 0.8% month-on-month increase. The spodumene production line is expected to hit record highs, while mica and recycled materials remain stable. In February, Chile’s lithium carbonate exports to China fell by 37.0% month-on-month. On the demand side, February’s lithium iron phosphate (LFP) production was 233,900 tons, down 9.89% from January due to the Chinese New Year, but expected to rise to 266,900 tons in March, a 14.11% increase. The supply-demand balance shows an expected inventory build-up of 8,948 tons in March. With supply exceeding expectations, prices are under pressure. Overall, lithium carbonate supply rebounded strongly in March, while demand improved but did not exceed expectations, keeping prices under pressure.
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