Might already be old hat?
I would have to think that this company should focus on the rare earth side of things.
TALISON Lithium expects demand for the metal to triple, spurred by a new generation of electric and hybrid vehicles.
However, it warns that production costs and low prices could crimp global output as smaller rivals struggle to meet costs.
Smallerminers trying to tap growing demand for lithium might struggle to "fundthemselves and to profitably operate in the current price scenario",chief executive Peter Oliver said.
Perth-based Talison is the world's biggest lithium miner.
Demandfor the soft, silver-white metal has grown by 5.5 per cent a year overthe past decade, driven mainly by its increased usage in batteries formobile phones and hand-held computers.
However, its growing use in electric vehicles could see the market "double or triple in the foreseeable future", Mr Oliver said.
"The only question is the timing," he said.
Vehicle makersincluding Toyota, Daimler and BMW are testing a new generation oflithium-ion batteries that are cheaper and last longer than previoussystems, allowing the development of a new generation of electric andhybrid vehicles.
China is racing to become a major player in thesector too. BYD's plans to market electric cars in the US and Chinatempted billionaire Warren Buffett to buy the stock.
Demand forlithium-ion batteries could more than triple to $US60 billion over thenext 10 years, according to Sanyo Electric. Separately, JD Power &Associates estimates that hybrid and electric vehicles will account forabout 7.3 per cent of global sales by 2020.
Lithium prices shot upto a peak of $US5500 a tonne in 2008 but weakened with the onset of theglobal financial crisis. Lithium now sells for about $US4500 a tonne inChina, according to Mr Oliver.
South America is the world's biggest source of lithium but the metal is also produced in the US, China and Australia.
Talison,which recently expanded its Greenbushes mine in Western Australia, isin the early stages of going global. In September, it completed theacquisition of Salares Lithium, which is developing a lithium mine inChile.
Shares in Talison traded on the Toronto Stock Exchange have doubled in value over the past year to $C6.60.
InAustralia, Talison recently completed an expansion of its Greenbushesmine, boosting output by 20 per cent, and is planning a further upgradenext year to lift the mine's capacity to 62,000 tonne a year.
MrOliver said the company had ordered key equipment for the next phase ofexpansion at the mine, which is expected to cost about $US20 million todevelop. Talison sold more than 250,000 tonnes of lithium concentrate inthe fiscal year to June 30, mostly to Chinese battery makers.
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