Australian Company Receives Highest-Ever Bid for Lithium

Australian mining company Pilbara Minerals just auctioned lithium for US $7,708 per ton, the highest price ever paid for the mineral—a component of batteries, according to Bloomberg’s online news publication.

A total of 22 bids from a broad range of qualified buyers were received online during the 30-minute auction window for the 5,000 dry metric ton cargo of spodumene concentrate—a partly-processed form of lithium—Pilbara Minerals officials reported.

A leading pure-play lithium company based in Perth, Western Australia, Pilbara Minerals owns the Pilgangoora Project, the world’s largest independent hard-rock lithium operation, according to the company.

The September 20 sale represents a 10% hike over top bid of $7,012 Pilbara Minerals received at its last auction just weeks earlier in early August, Bloomberg reported.

According to Bloomberg, “the jump is roughly in line with gains for refined lithium in China, where prices of the battery material have been racking up new records since last week as robust demand from electric vehicles meets tightening supply.”

Soaring lithium costs can increase pressure in the supply chain could induce battery producers to raise their selling prices, Bloomberg pointed out.