Lithium Price Slump Leads Sibanye to Abandon Us Project
Sibanye Stillwater has announced that it will not proceed with its plans to invest in the Rhyolite Ridge lithium project in Nevada, USA, following a significant price slump for the rare metal. The decision comes after updated studies showed that the project did not meet the company's investment hurdle rates at prudent pricing assumptions. Sibanye had agreed to invest $490 million for its 50% interest in the project as part of its diversification into battery metals.
- The sudden abandonment of this lithium project highlights the volatility and unpredictability of the global supply chain, particularly in industries with tight margins like mining.
- What implications will this move have on the overall landscape of the lithium market, and how might it affect other companies that are still committed to investing in the US?