Galaxy Resources has delivered record shipments of lithium concentrate at the Mt Cattlin spodumene-tantalite mine in Western Australia off the back of increased lithium demand.
The company exported 75,336 dry metric tonnes of lithium in the December quarter, marking a 349 per cent increase in quarterly sales from the September period.
Galaxy also achieved its production guidance for 2020, producing 33,344 dry metric tonnes for the quarter and 108,658 dry metric tonnes for the year.
Production at Mt Cattlin was boosted by strong customer demand, improved lithium prices and lower inventory.
Galaxy commenced its three-year offtake agreement with Chengxin Lithium Group Co for 60,000 tonnes per annum on a spot cargo basis earlier this month, before eventually moving to a market-based price formula.
The company stated lithium demand had spiked due to global electronic vehicle (EV) sales increases.
“Galaxy is experiencing solid demand for its spodumene as strong global EV sales increases the demand for lithium chemicals through the value chain leading to an increase in utilisation of spodumene converters,” Galaxy stated.
“As a result, spodumene inventory in China has declined to (around) two months of supply, down from (around) 6 months’ supply for much of 2020.”
Galaxy expects to ramp up Mt Cattlin’s operations to a “full rate” in the June 2021 quarter.
The company is targeting a production of 162,000-175,000 dry metric tonnes of lithium concentrate this year.