Lithium miners slammed on supply news

THE four biggest losers in the ASX 200 this morning were the index’s four lithium producers, following news that SQM could as much as quadruple production.

Lithium miners slammed on supply news Lithium miners slammed on supply news Lithium miners slammed on supply news Lithium miners slammed on supply news Lithium miners slammed on supply news

The Chilean lithium major yesterday obtained an increase to its lithium production quota after reaching an agreement with state investment promotion agency Corfo to end an arbitration process that began in 2014.

The agreement will triple SQM's lithium production quota from 180,000 tonnes of metallic lithium equivalent to 349,553t until its contract expires in 2030. With some 64,800t of its original quota remaining, this is equivalent to 2.2 million tonnes of lithium carbonate equivalent.

"This is a good agreement for both parties: SQM is going to undertake an important economic effort in the first years, with high payments and investment in production capacity, but in the long term, we are going to consolidate our...