SQM, Santiago, the world’s second-largest lithium producer, on Feb. 17 announced they will proceed with a new mine in Australia that will begin production just as demand for battery metals is set to surge, according to a Bloomberg report.
SQM’s Board of Directors approved development of the Mt. Holland project, which is a joint venture with Perth-based conglomerate Wesfarmers Ltd. The partners expect to spend about A$950 million ($735 million) each to build the mine.
First production of lithium hydroxide is projected for the second half of 2024 at an annual rate of 50,000 mt. After years of oversupply and low prices, the lithium market is showing signs of recovery, with global demand set to triple as the electric-vehicle revolution gains momentum.
“The commencement of production of this project is well aligned with future demand expectations,” SQM CEO Ricardo Ramossaid. “We expect the lithium industry will grow at a rate of about 20 percent per year in the long term.”
Mt. Holland represents SQM’s incursion into hard rock mining after decades of extracting the soft, silvery-white metal from brine under a giant salt flat in Chile’s Atacama Desert.
In addition to lithium, both jv partners are also involved in the fertilizer business.