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The main lithium producer, Albemarle (New York Stock Exchange:ALB) said it plans to sell some of its metal at auctions, as part of an effort to improve market transparency, Bloomberg reported Thursday.
Together with London Metal Exchange partner Metalshub, Albemarle (ALB) said that plans to hold multiple auctions for lithium supplies to allow potential customers “to indicate what they consider to be the appropriate price through private bids,” according to the report.
The company said it will host a bidding event for 10,000 tonnes of chemical-grade spodumene on March 26 and 100 tonnes of battery-grade carbonate on April 2.
Albemarle (ALB) and other producers have sold lithium in long-term contracts, making it difficult for automakers and other customers to determine a reference price, but the company's move could eventually prove significant in opening the market to traders. raw material.
The auction approach “can lead to a fair valuation of the product – for both buyers and sellers – and lead to a more robust and sustainable market,” the company said.
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