On August 1st, the Finance Associated Press (Editor Liu Rui) reported that with the recent continuous decline in the lithium price, the world's largest lithium miner, Albemarle, also could not resist the downward pressure and took the initiative to suspend its expansion plans in Australia.

On Wednesday, Eastern Time, Albemarle announced that it has begun a comprehensive evaluation of its cost and operational structure, which will include stopping the construction of a lithium processing production line at its Kemerton factory in Australia, and carrying out "maintenance and maintenance" on another local production line.

Albemarle stated in the announcement that cost improvement and production growth are expected to offset the current low price pressure, considering the annual prospect.

The price of lithium carbonate has dropped by about 80% from its peak.

Due to the lower-than-expected demand for electric vehicles and oversupply of lithium mines, the China's spot price of lithium carbonate has dropped by about 80% from its peak in 2022 and has dropped to the lowest level since July 2021. From the weekly chart, the spot price of lithium carbonate has been falling for 11 consecutive weeks since May this year.

Currently, some smaller and higher-cost miners, including Core Lithium Ltd., have closed their mines due to the low price of lithium.

In addition, in June of this year, a well-known domestic lithium salt enterprise, Zhicun Lithium Industry, released a notice that two wholly-owned subsidiaries under the group, Jiangxi Golden Lithium Industry Co., Ltd. and Tianzhuo New Materials Co., Ltd., will be shut down for maintenance in stages from July 1, 2024. In the opinion of some industry insiders, this maintenance shutdown may also be for price protection.

With the continuous decline in the lithium price, Albemarle's stock price has fallen by 34.8% since the beginning of the year. Last year, the company's stock price fell by 33% for the whole year.

Albemarle's stock price trend over the past five years

Western Australia is still seeking to increase lithium production.

Despite the continuous decline in the lithium price, Australia, the world's largest supplier of lithium, has not given up on increasing production. Australia is still seeking to increase the output of lithium and other key minerals, which has also put pressure on the future of lithium prices.

Previously, the United States and its diplomatic allies have been trying to reduce their reliance on China's lithium output by increasing Australian lithium mining output. However, the continued depression of the lithium market has made the prospect of this plan more uncertain.

"This is a complex issue that is affecting the international market of the global critical minerals industry," said Madeleine King, Australia's Minister of Resources in a statement on Thursday."The current state of the lithium market highlights the importance of policy support for Australia's critical minerals sector to help address market distortions worldwide."

King called on political opponents in the Australian Parliament to set aside political differences and support domestic industry support measures, including the government's plans to introduce preferential tax deductions for lithium producers in 2027.

On Wednesday, Liontown Resources Ltd., listed in Sydney, announced that its Kathleen Valley project, which is expected to produce 0.4 million tons of lithium ore annually, has achieved its first lithium production, which has brought further pressure to the market.