AsianFin -- Tianqi Lithium Corp. has cautioned investors about a projected net loss of up to 8.2 billion yuan ($1.1 billion) for 2024, citing persistently low lithium prices. The company also announced the suspension of its expansion project in Australia to mitigate financial risks.
Despite increased production and sales, the continued slump in lithium prices has significantly impacted profitability, the company said in a statement on Thursday. It estimates a net loss between 7.1 billion and 8.2 billion yuan for the year. Additionally, earnings from its investment in Chilean lithium producer Sociedad Química y Minera de Chile (SQM) are expected to decline sharply.
Tianqi has decided to pause the expansion of its Kwinana lithium refinery in Western Australia, a joint venture with Australian miner IGO Ltd. The decision aims to “avoid further unnecessary use of resources and minimize potential financial losses,” according to a separate statement from the company.
The announcements highlight the challenges faced by lithium producers as the industry grapples with a prolonged price downturn.
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