Too much lithium and not enough demand for the battery-making material have hit the Australian expansion plans of U.S.-based specialty chemical maker Albemarle Corporation which effectively acquired, and closed, a new mine on the same day.
The deal to buy a stake in the Wodgina lithium mine in Western Australia was first negotiated 12 months ago, a time when lithium prices were higher and demand for the electric vehicles which use it in their batteries was forecast to be stronger than it is.
Celebrations Turn Sour
Rather than celebrating the deal today turned into commiserations with the workforce sent home and the almost new mine put in mothballs.
As a warning about the slow uptake of electric vehicles (EVs) the Wodgina experience is a prime example of getting business priorities in the correct order which, in this case, mean make sure you can sell what you propose to produce.
Located in the remote Pilbara region of Australia, Wodgina is a mine once best known for producing tantalum which is used in electronic appliances such as cell phones, with lithium originally treated as a nuisance until demand grew from battery makers.
For the rest of this article: https://www.forbes.com/sites/timtreadgold/2019/11/01/not-the-best-deal-albemarle-pays-13-billion-for-a-lithium-asset-and-closes-it/#f3fa77d441a0