S&P Global Commodity Insights' Platts Launches First-Ever Daily South America Lithium Triangle Price Assessments

Rhea-AI Summary

S&P Global Commodity Insights' Platts has launched the first-ever daily, physical spot market price assessments for South America lithium carbonate, effective September 2, 2024. The new Platts Lithium Triangle (LiT) price assessments aim to bring pricing transparency to an important lithium supply growth market, complementing existing battery metals prices across Asia, Americas, and Europe.

The assessments will reflect a minimum quality of 99.0% Li2CO3, with a minimum of five metric tons, loading 14 to 60 days forward, expressed in US dollars per metric ton. The Lithium Triangle, encompassing parts of Argentina, Bolivia, and Chile, is projected to be the largest contributor to global lithium supply growth over the next 5 years, with production expected to surpass 631,000 metric tons by 2028.

Positive

• Launch of first-ever daily price assessments for South America lithium carbonate, enhancing market transparency
• Expansion of Platts' pricing information suite for lithium and battery metals across global markets
• Lithium Triangle production projected to surpass 631,000 metric tons by 2028, becoming the largest contributor to global lithium supply growth

Negative

• None.

Brings Pricing Transparency to Important Lithium Supply Growth Market

- Complements Existing Suite of Asia, Americas & Europe Battery Metals Prices & US Black Mass Assessments -

NEW YORK and LONDON and SINGAPORE, Sept. 3, 2024 /PRNewswire/ -- Platts, part of S&P Global Commodity Insights, the leading independent provider of information, data, analysis, benchmark prices and workflow solutions for the commodities, energy, battery metals and energy transition markets, has launched the first-ever daily, physical spot market price assessments for South America lithium carbonate, effective September 2, 2024. This builds on Platts' pre-existing suite of lithium and battery metals and raw materials pricing information across the Americas, Asia and Europe.

The launch follows months of engagement with the marketplace and responds to growing demand from market participants for increased transparency, clarity and insights regarding pricing for lithium products from South America, as the region grows in its role as a global supplier. Lithium carbonate is a key building block of electric batteries.

"We're excited to further our century-plus history of bringing pricing transparency to markets, extending our reach in battery metals to the important South America Lithium Triangle – a region poised to play a pivotal role in global lithium production," said Anna Crowley, Global Head of Metals Pricing, S&P Global Commodity Insights. "Our aim is to provide the essential price benchmarks and insights needed by market participants throughout the critical elements and battery value chain." 

The new Platts Lithium Triangle (LiT) price assessments, on a free-on-board (FOB) shipping basis, will reflect a minimum quality of 99.0% Li2CO3, a minimum of five metric tons of power packed in bags, loading 14 to 60 days forward and expressed in US dollars per metric ton.

The Lithium Triangle, encompassing parts of Argentina, Bolivia, and Chile, is pivotal for lithium production, boasting significant reserves of lithium-rich brine deposits, making it one of the most important and promising regions for lithium production globally.

S&P Global Commodity Insights data shows that in 2023, the Lithium Triangle produced 268,716 metric tons of Lithium Carbonate Equivalent (LCE) equivalent to 27% of global supply, ranking second globally. By 2028, supply is projected to surpass 631,000 metric tons, according to Alice Yu, Principal Analyst, Metals & Mining Research, S&P Global Commodity Insights.  As a block, Argentina, Bolivia, and Chile are expected be the largest contributor to global lithium supply growth over the next 5 years. Their combined production is the anticipated to remain the second largest in the world through to 2028.

"Not only is this the first daily price assessment for the emerging lithium production hub known as the Lithium Triangle, but the Platts LiT FOB assessment's relevance and usefulness goes well beyond South America and will likely have global implications," said Adriana Carvalho, Senior Managing Editor, Latin America Metals, S&P Global Commodity Insights.

The new South America lithium price assessment will follow the Platts Market-on-Close price assessment methodology, based on the principle that price is a function of time. All market information reported for the Platts price assessment process will be published in real-time for transparent visibility to the marketplace and will include firm bids, offers, transactions, indications of value, as well as any other data deemed relevant to the assessment process (including movements in related markets through spread differentials).

The new daily end-of-trading-day price assessment follows a Sao Paulo, Brazil publishing schedule and will reflect a market close of 4:00 pm. This new daily price assessment, along with an associated monthly average, will be published through S&P Global Commodity Insights publications and services, including: Platts Nonferrous Metals Alert, Platts Metals Daily, Battery Metals Market Report, and the Platts price assessments database.

For more details, visit Platts Assessments Methodology Guide.

Media Contacts: 
Americas: Kathleen Tanzy + 1 917-331-4607, kathleen.tanzy@spglobal.com
Jeff Marn +1 202-560-0776, jeff.marn@spglobal.com
EMEA: Paul Sandell + 44 (0)7816 180039, paul.sandell@spglobal.com  
Asia: Melissa Tan + 65-6597-6241, melissa.tan@spglobal.com   

About S&P Global Commodity Insights
At S&P Global Commodity Insights, our complete view of global energy and commodity markets enables our customers to make decisions with conviction and create long-term, sustainable value.  

We're a trusted connector that brings together thought leaders, market participants, governments, and regulators and we create solutions that lead to progress. Vital to navigating commodity markets, our coverage includes oil and gas, power, chemicals, metals, agriculture, shipping and energy transition. Platts^® products and services, including leading benchmark price assessments in the physical commodity markets, are offered through S&P Global Commodity Insights. S&P Global Commodity Insights maintains clear structural and operational separation between its price assessment activities and the other activities carried out by S&P Global Commodity Insights and the other business divisions of S&P Global.   

S&P Global Commodity Insights is a division of S&P Global (NYSE: SPGI). S&P Global is the world's foremost provider of credit ratings, benchmarks, analytics and workflow solutions in the global capital, commodity and automotive markets. With every one of our offerings, we help many of the world's leading organizations navigate the economic landscape so they can plan for tomorrow, today. For more information visit https://www.spglobal.com/commodityinsights. 

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SOURCE S&P Global Commodity Insights

FAQ

What new price assessment has S&P Global Commodity Insights' Platts (SPGI) launched for the lithium market?

Platts has launched the first-ever daily, physical spot market price assessments for South America lithium carbonate, called the Platts Lithium Triangle (LiT) price assessments, effective September 2, 2024.

What is the significance of the Lithium Triangle in global lithium production?

The Lithium Triangle, encompassing parts of Argentina, Bolivia, and Chile, produced 27% of global lithium supply in 2023 and is projected to be the largest contributor to global lithium supply growth over the next 5 years.

What are the specifications for the new Platts Lithium Triangle (LiT) price assessments?

The assessments reflect a minimum quality of 99.0% Li2CO3, a minimum of five metric tons, loading 14 to 60 days forward, expressed in US dollars per metric ton, on a free-on-board (FOB) shipping basis.

How much lithium production is expected from the Lithium Triangle by 2028, according to S&P Global Commodity Insights?

According to S&P Global Commodity Insights, lithium production from the Lithium Triangle is projected to surpass 631,000 metric tons by 2028.