Idled Australian Lithium Operations Poised for Restart as Prices Recover, ANZ Says
Several Australian lithium operations that were placed on care and maintenance between 2024 and 2025 are poised to restart as prices recover, ANZ said in a Monday report. Globally, lithium prices have eased back following a sharp rally since mid-2025, while demand has held up due partly to support from the battery storage sector. With prices now well above production costs, supply constraints are starting to wane, the bank said. In Australia, assets including Bald Hill, the Ngungaju plant, and Finniss were idled in late 2024 due to weak prices but are now being brought back online, raising forecast spodumene production by 3% to 579,000 tonnes this year and by 15% to 655,000 tonnes in 2027, ANZ said. in terms of demand, electric vehicles still dominate to account for roughly 55% of lithium consumption, but energy storage systems are gaining share, rising to 20% this year from 5% before the pandemic, the bank added.
Several Australian lithium operations that were placed on care and maintenance between 2024 and 2025 are poised to restart as prices recover, ANZ said in a Monday report.
Globally, lithium prices have eased back following a sharp rally since mid-2025, while demand has held up due partly to support from the battery storage sector.
With prices now well above production costs, supply constraints are starting to wane, the bank said.
In Australia, assets including Bald Hill, the Ngungaju plant, and Finniss were idled in late 2024 due to weak prices but are now being brought back online, raising forecast spodumene production by 3% to 579,000 tonnes this year and by 15% to 655,000 tonnes in 2027, ANZ said. in terms of demand, electric vehicles still dominate to account for roughly 55% of lithium consumption, but energy storage systems are gaining share, rising to 20% this year from 5% before the pandemic, the bank added.