Tianqi Lithium Returns to Loss as Battery-Metal Rout Lingers-OxBig News Network

(Bloomberg) — Tianqi Lithium Corp. warned volatility in lithium product prices and growing geopolitical risks may cloud its outlook as it swung to a first full-year loss since 2020 amid a prolonged battery-metal rout.

The Chinese lithium giant posted a net loss of 7.9 billion yuan ($1.1 billion) in 2024, citing weaker prices and impairment due to changes in constructions plans, according to a filing to the Shenzhen Stock Exchange. That compared with a net profit of 7.3 billion yuan the year before.

Although Tianqi’s production and sales volumes of lithium compounds and derivatives increased year-on-year in 2024, the price of lithium products experienced a “significant decline” due to market volatility, the company said in the statement. That pushed gross profit from the products sharply below 2023 levels, it added.

“The recent international environment and macro economic situation including the policy aspect did result in a bit of pressure or changes,” Tianqi Chairwoman Jiang Anqi said at a briefing on Thursday. “But we think governments around the world are still supportive toward the development of the new energy vehicles and energy storage industries.”    

The company’s shares closed down 0.8% in Shenzhen on Thursday.

Tianqi’s loss shows the struggle faced by the battery-metals industry, with lithium prices collapsing almost 90% from a peak in 2022. The supply glut, accompanied by disappointing demand growth for electric vehicles, is driving companies worldwide to rein in spending and cut output.

Meanwhile, the company also flagged the rising trend of trade protectionism in the industry globally amid the increasing strategic importance of lithium. 

“Some countries are adopting measures such as subsidies and tariff barriers to support domestic enterprises. Such actions may pose challenges to Chinese companies’ overseas investments and operations,” the company said.

In January, Tianqi halted construction of a refinery expansion in Western Australia that already cost a preliminary investment of 1.4 billion yuan, saying it wasn’t “economically viable.” The company had said at the time that it plans to keep the first phase of the Kwinana project running and called for support from the government.

Meanwhile, lower income from Tianqi’s investment in Chilean producer Sociedad Química y Minera de Chile also contributed to its steep loss. SQM earlier this month said it expects average prices in 2025 to be slightly lower than last year, while it reported a full year loss of $404 million. 

Tianqi’s 2024 net loss was at 8.7 billion yuan on IFRS accounting standards due to additional impairment provisioning, it said.  

–With assistance from Foster Wong and Andrew Janes.

(Updates with management comments in fourth paragraph, share prices in fifth paragraph)

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