Mining Digital Magazine November 2024 | Page 67

MINING SITES
( LME ) is positioned itself to play a crucial role in this evolving market .
Robin Martin , Head of Market Development at the LME , says : “ Almost no lithium trading is done on open markets . Most sales are made through long-term agreements between producers and customers . Pricing isn ’ t particularly transparent .”
This lack of transparency can lead to marked price volatility , says Robin : “ At the beginning of this year the lithium hydroxide price was around US $ 85,000 per tonne . Now it ’ s trading at closer to US $ 28,000 . So in less than a year , the price has come off by two-thirds .”
The LME is working to address these issues by promoting index-based pricing and introducing a passport system for sustainability standards . Robin argues these measures will help car makers and battery producers better manage price fluctuations and ensure supply security .
The rapid growth of the EV market is not only driving demand for new lithium sources but also creating opportunities in the recycling sector . As the first wave of electric vehicles reaches the end of its lifecycle , battery recycling is emerging as a crucial component of the lithium supply chain .
In Norway , Hydrovolt , a joint venture between battery maker Northvolt and aluminium producer Norsk Hydro , operates Europe ’ s largest battery recycling plant . The facility processes used car batteries , recovering up to 95 % of critical raw materials .
This ‘ urban mining ’ approach could become an increasingly important source of lithium and other battery materials . As more countries adopt electric vehicles , similar recycling operations are emerging globally , potentially reshaping the lithium supply landscape .
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