Mineral Resources (ASX:MIN) plans to resume Wodgina lithium operations

Highlights

  • Mineral Resources (ASX:MIN) plans to resume its operations at the Wodgina lithium mine.
  • The Wadgina mine is located in the Pilbara region of Australia and is jointly owned by MIN and Albemarle Corp.
  • The prices of lithium skyrocketed in the past year as automobile companies across the globe race to secure supplies.

One of the leading mining service company in Australia, Mineral Resources Limited (ASX:MIN) plans to resume its operations at the Wodgina lithium mine from next year. The significant decision of the miner is backed by the robust demand for the mineral amid burgeoning demand in the electric vehicle market. Lithium is an important component in the manufacturing of new-age lithium-ion batteries which are empowering electric vehicles nowadays.

The Wadgina mine is located in the Pilbara region of Australia and is jointly owned by MIN and Albemarle Corp. Additionally, the mine has a capacity to process 750,000 tonnes of spodumene concentrate per year. The production from the mine is expected to restart in the third quarter of 2022 initially with the start of one of the three 250,000 tonnes per year processing lines and the other two lines coming online as demand rises. The demand for spodumene concentrate was idle since November 2019 as the demand for lithium was weak.

Record lithium prices

Rising lithium prices

Rising lithium prices | Source: © Krisdog | Megapixl.com

Lithium prices have been soared to all-time-high levels of CNY182,500 per tonne in China as of Monday on the back of strong demand and tight supplies. The prices of lithium skyrocketed in the past year as automobile companies across the globe race to secure supplies amid a global push for low-carbon energy sources. In addition to that, the demand for the mineral continued to rebound as the economies recover from the lows of the pandemic.

Bottom Line

Mineral Resources Limited (ASX:MIN) plans to resume its operations at the Wodgina lithium mine from next year as the demand for the mineral is increasing amid burgeoning demand for electric vehicles.

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