American lithium company Livent Corp announced 87% drop in quarterly adjusted profit
This year, the company forecast further decrease.
The significant decline in economical results is caused mainly by drop in lithium price, an important metal for rechargeable batteries. “Despite record high demand for lithium during last year, price of the metal declined due to oversupply on the market,” Chief Executive Officer Paul Graves said.
Lithium producers and resource developers respond to the situation by delaying of expanding lithium mines. Adjusted net income of Livent Crop dropped in the fourth quarter of 2019 to less than $8 million, from more than $61 million a year earlier. Profits dropped only in one third.
Other lithium producers experienced similar worsening results. Rival company Albemarle Corp reported a lower-than-expected quarterly profit and presume decline in tens of percent. Similarly, the company is affected by lithium price drop, while mining costs should grow.