Last week, Pilbara Minerals updated the market on the results of its latest spodumene concentrate auction, held via its digital Battery Material Exchange platform. 

In total, 41 bids were received during the 30-minute auction for the cargo of 5,000dmt at a target grade of ~5.5% lithia.  Pilbara intends to accept the highest bid of US$6,188/dmt (SC5.5, FOB Port Hedland basis) which, on a pro rata basis for lithia content (inclusive of freight costs), equates to a price of ~US$6,841/dmt (SC6.0, CIF China basis).  The price secured was, therefore, slightly lower than the record price of $US7,017/dmt reached in the previous auction.

In June, Spodumene Li2O 6% China prices averaged US$4,500/t, up nearly 12% m-on-m and a staggering 577% y-on-y.  In the near term, Project Blue believes that spot prices may have considerable upside, although concerns over the Chinese economy will likely clip this potential.  Last month saw lithium price forecasts very much in the spotlight after Goldman Sachs noted that it expected lithium prices to continue to correct for the rest of the year and remain under pressure from increasing supply over the next few years.  Many other commentators are bullish, with the longer-term narrative being one of lithium bottlenecks amidst strong demand.