What is a fair price for lithium? Perhaps a better question is: what is the best way to find a fair price for lithium? Albemarle, the world’s leading producer, has begun to switch its pricing mechanism from fixed-price contracts to auctions. The goal is to achieve “fair product valuation — for both buyers and sellers — and drive towards a more robust, sustainable market.” Albemarle held one auction in late March and has planned another for today. The Australian company Pilbara, meanwhile, has switched from auctions back to negotiated contracts. The price of the lithium source material spodumene has declined sharply from a peak of over $6,000 per ton in late 2022 to less than $1,000 per ton in March 2024. An imbalance between the supply side and the demand side, as the market for EVs remains unclear, makes it difficult at the moment to gauge the material’s value.
Albemarle Plans to Auction Lithium With Aim of ‘Fair’ Valuation