Mineral Resources has reported a strong lithium quarter, with production totalling 157,000 dry metric tonnes across three sites.
This strong performance in production aligns with Mineral Resources’ (MinRes) broader strategy to expand its footprint in the lithium market, a key component for electric vehicle (EV) batteries and a priority for the company amid growing global demand.
Shipments from MinRes’ lithium assets reached 178,000 dry metric tonnes (dmt) during the quarter, slightly exceeding production levels due to stockpiled material from previous quarters.
Despite the positive output figures, MinRes reported an average realised lithium price of $US815 per dmt SC6, marking a 32 per cent quarter-on-quarter decrease.
This price decline reflects broader market adjustments as lithium prices come down from the peak levels seen in previous years, driven by heightened supply in the global market.
However, MinRes remains optimistic about the long-term demand outlook, underpinned by the ongoing growth of the EV and energy storage sectors.
Central to MinRes’ lithium strategy is the Mount Marion lithium project in Western Australia, one of the company’s flagship assets.
The project is a joint venture with Jiangxi Ganfeng Lithium, which achieved steady production over the quarter and is undergoing initiatives to improve both production efficiency and product quality.
By targeting higher-quality output, MinRes aims to enhance the overall value derived from its lithium operations, even as it adapts to the current pricing environment.
Another highlight for MinRes’ lithium division was the ongoing cost optimisation program implemented across its lithium assets.
This program aims to reduce production costs by refining operational processes and leveraging economies of scale.
Cost control remains critical for MinRes to maintain competitive margins and resilience amid fluctuating lithium prices.
With solid production figures and strategic initiatives aimed at cost reduction and product quality, MinRes continues to strengthen its position in the lithium market.
As the company adapts to current market dynamics, it remains well-positioned to benefit from the long-term growth trajectory in lithium demand, driven by the energy transition and the rising need for critical battery minerals.
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