---
title: "Lithium producers defy mining sector slump with surging profits"
description: "Lithium producers in Australia saw profits surge on the back of high prices last year, avoiding a slump in earnings by other metal miners."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "Business Maverick"
author: "Bloomberg"
author_url: "https://www.dailymaverick.co.za/author/bloomberg/"
canonical_url: "https://www.dailymaverick.co.za/article/2023-02-24-lithium-producers-defy-mining-sector-slump-with-surging-profits/"
published: "2023-02-24T06:02:08"
lang: "en-ZA"
word_count: 214
---

# Lithium producers defy mining sector slump with surging profits

> Lithium producers in Australia saw profits surge on the back of high prices last year, avoiding a slump in earnings by other metal miners.

By Bloomberg · Published 24 February 2023, 08:02 SAST

## Key points
- Pilbara Minerals and Allkem have reported a 10-fold jump in net income for the second half of 2022 due to price gains, despite the downturn in other commodities. Lithium prices were boosted by carmakers' electric vehicle targets, but recently slumped 24%. Pilbara Minerals saw a fourfold increase in spodumene concentrate prices while Allkem's earnings rose on strong lithium carbonate and spodumene concentrate pricing. Mineral Resources also posted record earnings from its lithium business. Despite the market uncertainty, these companies are still managing to reap rewards from the boom in lithium demand.
- Pilbara Minerals and Allkem reported a 10-fold increase in net income for the second half of 2022.
- Lithium prices held strong throughout the year, boosted by carmakers rushing to meet electric vehicle targets.
- Pilbara Minerals said net profit rose to A$1.24 billion due to a fourfold increase in the price of spodumene concentrate.
- Allkem and Mineral Resources also posted record earnings from their respective lithium businesses.

## Content

Pilbara Minerals, one of the nation’s top producers, and Allkem both said net income jumped more than 10-fold in the second half of 2022 from a year earlier. Price gains in the period helped them to offset the inflationary pressures and tight labour market that saw mining giants Rio Tinto Group and BHP Group report sharp drops in profit earlier this week.

Most commodities fell in the second half of 2022 from the highs in the immediate aftermath of Russia’s invasion of Ukraine while lithium’s gains held through most of the year, boosted by surging demand from carmakers rushing to meet ambitious electric vehicle targets. But, lithium carbonate prices in China have tumbled 24% this year, with Goldman Sachs Group Inc. this week warning that the slump has further to run.

Pilbara Minerals said net profit rose to A$1.24 billion (R15.375-billion) in the six months through to December as production rose 86%. The main driver was a fourfold increase in the price it received for its spodumene concentrate, a lithium ore, the company said.

Allkem, which produces lithium in Australia and Argentina, said net profit surged on the back of “strong lithium carbonate and spodumene concentrate pricing.” Mineral Resources, which mines lithium and iron ore, also posted record earnings from its lithium business. **BM/DM**