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Major lithium producer Albemarle (NYSE:ALB) said it plans to sell some of its metal at auctions, as part of an effort to improve market transparency, Bloomberg reported Thursday.
This was stated together with the Metalshub partner of the London Metal Exchange, Albemarle (ALB). plans to hold more auctions for lithium supplies to allow potential customers to “declare what they consider the appropriate price through private bidding,” according to the relationship.
The company said it will host a tender for 10,000 tonnes of chemical-grade spodumene on March 26 and 100 tonnes of battery-grade carbonate on April 2.
Lithium has been sold under long-term contracts by Albemarle (ALB) and other producers, making it difficult for automakers and other customers to determine a reference price, but the company’s move could ultimately prove significant in opening up the market to commodity traders.
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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