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Lithium pricing rising on strong electric car demand - FMC

Metal News - Published on Mon, 06 Aug 2018

Image Source: ET Auto
Reuters reported that FMC Corp, which is spinning off its lithium division as a publicly traded company later this year, said that prices for the light metal continue to rise on strong demand from electric vehicle battery makers. There are growing worries about oversupply in the lithium sector, with several new production facilities under construction around the globe. Philadelphia-based FMC posted a better-than-expected second-quarter profit, helped in part by a 20 per cent increase in sales of lithium hydroxide and carbonate, the two most common derivations of lithium used by battery suppliers for Tesla Inc and others.

FMC Chief Executive Pierre Brondeau said that "We are seeing sequential pricing as well as very strong year-on-year pricing.”

Mr Brondeau said that the company is able to charge more under those contracts as demand rises for the metal, a critical battery component.

Mr Brondeau said that FMC's main lithium production facility is in Argentina, where the country's peso currency has been dropping in value to the US dollar this year due in part to weakness in emerging markets and uncertainty about the local economy. That devaluation actually boosted exports from the lithium division in the second quarter.

Spot market prices in China for lithium have plunged this year due in part to the oversupply concerns, though the Chinese spot market is relatively small. FMC, like competitor Albemarle Corp, has annual contracts with customers that it renegotiates annually.

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Posted By : Joykumar Irom on Mon, 06 Aug 2018
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