Nemaska bankruptcy protection filing threatens to stall investments in lithium projects

Canadian spodumene producer Nemaska Lithium's filing for bankruptcy protection could be a bellwether moment for spodumene producers searching for capital while lithium prices continue to fall, making upstream investment seem unattractive, market sources have told Fastmarkets.

The Canadian junior miner filed for bankruptcy protection on December 23 last year to provide it with more time to seek refinancing.
Nemaska Lithium received funding of C$1.1 billion ($845.44 million) in May 2018 but is searching for an additional C$375 million to enable it to bring online a further 37,000 tonnes per year of lithium hydroxide production, a 4,000-tpy increase.
Fastmarkets' latest assessment of the price for lithium hydroxide monohydrate 56.5% LiOH.H2O min, battery grade, spot price, ddp Europe and US, was $11.50-12.50 per kg on Thursday January 9, down from $15-17 per kg in January 2019.

Nemaska signed an offtake agreement with LG Chem in 2018 - due to start in 2020 - for 90%...

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