Despite the recent continuous decline in lithium ore prices, mining giant Rio Tinto CEO Jakob Stausholm insisted on Sunday that demand for lithium ore is expected to continue to grow, supported by the global trend of car electrification.
But he also predicts that lithium ore prices will fluctuate. And he also acknowledges that Rio Tinto will not make any major acquisitions to expand its lithium business.
Still firmly optimistic about the long-term prospects of lithium
Due to weak global demand for electric vehicles, lithium prices have also been dragged down recently.
According to a series of data tracked by Benchmark Mineral Intelligence, global lithium ore prices have plummeted by over 80% in the past 12 months. This cold wave has forced many lithium mine manufacturers to shut down production and lay off a large number of employees.
&Amp; Quota; We have always believed that the price of battery materials will fluctuate; Quota; Stauss Holm stated at the annual meeting of the Canadian Association of Explorers and Developers (PDAC) in Toronto.
The PDAC meeting is held from Sunday to Wednesday local time and is one of the gatherings of the world's largest mining companies and their financiers.
"In an ideal situation, you need a larger battery capacity, not only for electric vehicles, but also for fixed batteries. So there will be more batteries in the world, and I have no doubt about it. Therefore, you need more lithium," added Stausholm.
A few global mining giants betting on lithium mines
As the world's second-largest mining company, Rio Tinto is one of the few large mining companies in the world to bet on lithium mines. Other mining giants, such as BHP Billiton, did not choose to invest in lithium mines.
Currently, Rio Tinto is developing the Rincon lithium salt mine project in Argentina. The company plans to develop a battery grade lithium carbonate mining area with an annual production capacity of 3000 tons, which is expected to start production by the end of 2024.
The company also owns the Jadar lithium project in Serbia. However, the Argentine government revoked the project's license in 2022 citing environmental issues, and the project is currently in dispute.
Stausholm also stated that Rio Tinto will avoid any large-scale acquisitions to develop its lithium business and instead seek ways to improve its lithium extraction technology.
This is in stark contrast to its attitude over a year ago: at the end of 2022, when lithium prices were still at a high level, Rio Tinto executives had repeatedly stated to the public that they would actively expand their lithium business through acquisitions.