Wang's comments echo some other forecasts. More mine supply will push the market into a surplus next year and help soften prices, BYD's Executive Vice President Stella Li said earlier this month. China's withdrawal of EV credits, as well as uncertainties over the pandemic and global economy, are also weighing on the outlook.
"Over the next six months, demand softness is likely to dominate the lithium price discussions as demand in China is challenged by zeroing subsidies and surging Covid-19 cases," Alice Yu, analyst at S&P Global Commodity Insights, said by email."Consumers in the West face growing affordability issues.
Wang's firm was one of three Chinese companies ordered by Ottawa to divest stakes in Canadian-listed firms under tougher rules for foreign investment. Separately, it still owns the Tanco mine in Canada, as well as the Bikita lithium site in Zimbabwe."Our confidence to invest in more mines in North America is relatively low at present," Wang said.
The company is currently in talks for potential projects in South America, and will continue to look for opportunities in Africa, where developing mines is easier than other jurisdictions, he said. Central Asia is another prospect — including Afghanistan once the security situation improves there, he said.
Sinomine currently has 25 000 tons of annual production capacity for battery-grade lithium hydroxide and carbonate. The company expects that to increase to 60 000 tons next year, and is targeting 100 000 tons capacity by 2025, Wang said.In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
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