From Benchmark Mineral Intelligence Newsletter...
LG Chem said this week it will spend $3.2 billion to build a cathode production facility in Tennessee. The company is targeting 120,000 tonnes of cathode production a year by 2027. If it succeeds, this would more than double the potential cathode production of North America. The announcement is the latest direct foreign investment in Tennessee's history and further cements the state's growing position as a key battery hub in the US.
It comes following two years of rising cathode prices. Benchmark's Cathode Price Index has risen a third this year and is over double what it was in January 2021. In part, this is due to rising lithium carbonate prices which have risen by over 120% this year in China and are still trading at record high levels. To make things worse, some cathode plants are failing to receive the lithium they ordered in long-term contracts forcing them to buy material in spot markets.
Elsewhere, the three largest non-Chinese lithium producers are all continuing to invest in China, despite growing geopolitical risks. In a data-rich story this week, Benchmark Source looks at the quantities of lithium produced by Albermarle, Livent and SQM in China, North America, and Free Trade Agreement countries.
Batteries are more than just lithium, however. One often overlooked mineral in NCM cathodes is manganese. Although there is ample manganese ore, the capacity to refine it into the high-purity manganese sulphate required for batteries is almost entirely in China. Only two facilities outside of China are currently operational. In an article this week, Benchmark Source looks at the options outside of China.
On the other side of the battery is the anode, typically made from either natural or synthetic graphite. Although synthetic graphite has higher emissions, natural graphite isn't without its own set of woes. Violence in Mozambique and climate change are amongst the factors making its supply chain more fragile than that of synthetic graphite.
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