Latest news with #Tianqi
West Australian
2 days ago
- Business
- West Australian
‘Low confidence' in Kwinana as IGO left with no choice but to scrub value off ailing lithium refinery
IGO has determined any value left in a troubled lithium hydroxide train at Kwinana will now need to be written off, with chief executive Ivan Vella declaring outright the miner has little faith in its future. More downtime and equipment failures meant the struggling operation was running at just 35 per cent of its capacity during the quarter and will not meet its targeted production for the year. IGO also had to fork out another $4.5 million in recent months to sustain the refinery, which still copped an even bigger earnings before interest, tax, depreciation and amortisation loss for the period of $28.7m. Mr Vella made it clear on Wednesday the miner was running out of patience with the operation, though it remained unclear in the results whether IGO and its joint venture partner Hong Kong-listed lithium developer Tianqi would make the call to shut up shop. After the dire quarter in Kwinana, IGO said another $70m to $90m would need to be scrubbed from the value of its main lithium production unit, meaning the operation will likely be fully impaired on the books for the full year. It adds to the $525m erased from the value of Train 1 in January, when IGO also called off plans to build a second processing train at the site due to weak lithium prices. 'Despite the strong commitment from the team at site to address operational problems and ongoing issues, IGO has low confidence in the ability of this asset to achieve meaningful, sustained improvement,' the CEO told the market on Wednesday. 'We continue to work with our JV partner to determine the optimal future pathway for the plant.' Greenbushes was yet again IGO's saving grace, with the South West lithium mine making sales of 412,000 tonnes of spodumene concentrate for the period, an improvement of 12 per cent on the prior quarter. Costs and production targets were both within guidance for the full year. More to come.
The Star
15-07-2025
- Business
- The Star
China's lithium giants tumble after 1H profit warnings
The three producers cited lower lithium sale prices from January through June. SHANGHAI: Shares in China's lithium producers fall sharply after two of the largest miners warned that battery-metal woes had weighed on earnings for the first half (1H) of financial year 2025. Tianqi Lithium Corp forecast a negligible net income of up to 155 million yuan (US$22mil) for the first six months, while Ganfeng Lithium Group Co predicted a net loss of 300 million yuan to 550 million yuan for the same period. Chengxin Lithium Group Co said its net loss could be as high as 850 million yuan. The three producers, commenting in preliminary statements released late on Monday, cited lower lithium sale prices from January through June. Chengxin's stock slid as much as 5.1% in Shenzhen. In Hong Kong, Ganfeng's stock fell as steeply as 6.8% in, while Tianqi slid 3.3%. Ganfeng said in a statement that the fall in prices of lithium salt and lithium battery products hit operating earnings 'by a certain extent', despite an orderly ramp up of battery capacity and an increase in sales. The company also said it had written down the value of assets including inventories, but provided no detail. Chengxin said it expected to take a 418 million yuan impairment on its inventory. In better news, Tianqi said that it had made progress in digesting existing lithium concentrate inventory, meaning the cost of concentrates was now approaching procurement prices. The company also expects an increase in investment income from miner Sociedad Quimica y Minera de Chile S.A., after projecting an year-on-year increase in SQM's performance in the first half. Still, even after two consecutive years of losses, spot lithium carbonate prices in China retreated by almost another fifth in the first half, battering an industry that has struggled with a supply glut and slower-than-expected electric vehicle sales. Domestic prices have seen some signs of recovery in recent weeks, thanks to Beijing's pledge to regulate 'disorderly' price competition in oversupplied sectors. The companies are due to report full reports for the six months in August. — Bloomberg
West Australian
21-05-2025
- Business
- West Australian
Wesfarmers tips $60m loss at Covalent Lithium joint venture with SQM, expects more pain ahead
Wesfarmers has revealed it expects to book a $60 million loss for its share of the Covalent Lithium joint venture this year as it concedes prices for the key battery metal will remain depressed in the short term. And it warned investors that figure could climb even high in 2025-26. But the retail conglomerate — which holds an equal share of the $2.6 billion joint venture along with Chile's SQM — told analysts at an investor briefing day in Sydney on Thursday that it expects demand to remain strong over the medium to long term. Covalent runs the Mt Holland mine south of Southern Cross and is building a lithium hydroxide refinery at Kwinana. Wesfarmers told analysts that global electric vehicle penetration was forecast to increase from 19 per cent in 2024 to 41 per cent over the next six years, and that new supply would be required 'to meet anticipated strong long-term demand'. But it acknowledged new global lithium projects coming on line were holding back a price rebound. Prices of the spodumene concentrate produced by WA miners to power EV are yet to show any meaningful signs of improvement and remain more than 90 per cent off their late 2022 peak. The prevailing price is currently $US690 a tonne, according to Shanghai Metals Market, down about $US130/t in the space of a month and continuing a broad decline over the past two years. Wesfarmers also pointed to the global upheaval caused by President Donald Trump's war on tariffs as a potential threat to a price recovery. 'The full impact of US tariffs on the battery value chain is unknown and creates uncertainty in the short term,' it said. Wesfarmers' share of output from Mt Holland this financial year is set to come in at about 140,000 to 150,000 tonnes as the plant ramps up to nameplate capacity. It said the following financial year would be one of transition, with higher unit costs expected as the lithium hydroxide refinery at Kwinana ramps over an 18-moth period after first product. The refinery is now 88 per cent complete and commissioning is due to start by the middle of this year. 'At current subdued pricing, losses in FY26 are expected to be greater than FY25, impacted by the timing of ramp up and product qualification,' it said. Wesfarmers will be hoping to avoid the problems that have held back production of its neighbour. IGO's refinery has been plagued by technical problems for years and chief executive Ivan Vella earlier this month conceded the miner was running out of patience with the project it shares with Tianqi. IGO and Tianqi in January aborted expansion works at Kwinana and shortly after crossed out $525m of the refinery's book value. The operation incurred a net earnings loss of $161.1m for the first half of the 2025 financial year. Mr Vella said the battery metals producer 'cannot continue to just spend money' at the Kwinana refinery 'without a clear path of where that takes us economically'.
Yahoo
20-05-2025
- Business
- Yahoo
Watch China's private Ceres-1 rocket launch 4 satellites from a ship at sea (video)
When you buy through links on our articles, Future and its syndication partners may earn a commission. The Chinese company Galactic Energy launched its solid-propellant rocket this morning (May 19) from a ship at sea. The Ceres-1 rocket launched today from the waters off the east coast of China's Shandong Province. The Taiyuan Satellite Launch Center coordinated the launch, which sent four Tianqi satellites into low Earth orbit (LEO). Liftoff occurred at 3:38 a.m. EDT (0738 GMT; 3:38 p.m. local Beijing time). This was the fifth launch of Ceres-1 from a sea-based platform. The four Tianqi satellites join a constellation of Internet of Things (IoT) data-connectivity spacecraft operated by the Beijing-based company Guodian Gaoke. Ceres-1 is a four stage, 66-foot-tall (20 meters) launch vehicle powered by one solid rocket engine on each of its lower three stages and a hydrazine liquid engine on its fourth stage. While today's launch was the Ceres-1's fifth liftoff at sea, it was the rocket's 20th flight overall. All but one have been successful. Related stories: — US and China need a space hotline for orbital emergencies, experts say — China plans to take 'hack-proof' quantum satellite technology to new heights — Watch China launch Smart Dragon-3 rocket from the sea (video) Guodian Gaoke has now launched a total of 41 Tianqi satellites to LEO, completing the company's initial plans for its constellation. The Tianqi network is designed to provide global data transmission for internet-connected smart devices, for both government and private users. Galactic Energy has proven a successful company within China's commercial space industry. In addition to the Ceres-1, the company is developing a liquid-propellant launch vehicle, called Pallas-1, which is expected to debut later this year. As it progresses, the Pallas-1 design will eventually incorporate a recoverable and reusable first stage.
