From the latest news from CarbonCredits, you can see that the lithium market has entered a period of price decline. This is mainly because of weaker demand conditions and an oversupply of lithium carbonate in key regions. However, this trend doesn’t favor the top lithium miners and producers across the globe. Recently Albemarle and Pilbara have taken some drastic steps to counter the lithium market lows.

Let’s see how they are navigating the challenges…

Albemarle’s Strategy for Surviving the Lithium Market Slump

As a consequence of dropping lithium prices, Albemarle Corporation is set to reduce its global workforce by between 6% and 7%, which will save around $300 million to $400 million annually as reported by S&P Global Commodity Insights.

Despite being the world’s largest lithium producer, the company reported a net loss of $1.07 billion for the third quarter. The company released its earnings report on November 6.

Kent Masters, Albemarle’s president and CEO expressed himself by saying,

“Right now we’re focused on making sure that we put the cost structure in place to compete through the bottom of the cycle. We’re trying to create the flexibility to pivot up if the market returns.”

The New Approach

The earning report revealed how the company is planning to streamline its organization by adopting a more integrated and functional model. In purview, it will reduce its 2025 capital expenditures by about 50% compared to 2024 to bring spending down to between $800 million and $900 million.

The company noted that this quarter’s results sharply contrast with the $302 million net income earned in the same period last year.

CEO Kent Masters emphasized that China has scaled back high-cost lepidolite production, while Australian miners have reduced output and laid off employees in response to market conditions. Still, these trimming measures are insufficient to stabilize lithium prices.

According to him, the surprising factor is that “African supply has filled Chinese cuts.”

On the demand side, CFO Neal Sheorey highlighted a 36% increase in demand for lithium in grid storage this year, driven by U.S. and Chinese projects, along with a 23% rise in global electric vehicle registrations.

Albemarle estimates that around 25% of the lithium industry is currently operating at a loss. The reason is again the oversupplied market. However, the top lithium producer wants to stay competitive over the long term. This is why they have conducted a thorough review of their costs and operating structure.

Broadly speaking, they revealed their potential future actions to address ongoing market challenges. Masters said that, while rising demand could help restore balance further production cuts will be essential to stabilize prices effectively. In response to the lingering low lithium prices, the company plans to adopt a conservative growth strategy to ensure long-term reliance.

Notably, In July, Albemarle halted expansion plans at its Kemerton lithium hydroxide refinery in Australia to manage costs more effectively.

Li-FT Power: Exploring & Developing Hard Rock Lithium Deposits In Canada

Li-FT Power Ltd. (TSXV: LIFT) recently announced its first-ever National Instrument 43-101 (NI 43-101) compliant mineral resource estimate (MRE) for the Yellowknife Lithium Project (YLP), located in the Northwest Territories, Canada.

An Initial Mineral Resource of 50.4 Million Tonnes at Yellowknife.

This maiden estimate is a major milestone for the company and marks a significant step forward in the project’s development. Li-FT Power’s upcoming mineral resource is expected to further solidify Yellowknife as one of North America’s largest hardrock lithium resources.

Click to learn more about lithium and Li-FT Power Ltd. >>

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Pilbara’s Strategic Move to Overcome Lithium Price Dip

On October 30, Pilbara Minerals announced its decision to pause construction of their Mid-Stream Demonstration Plant Pilgangoora lithium mine in Western Australia citing weak lithium prices as the main reason. The project is a JV with environmental technology company Calix Ltd formed in November 2022.

The smaller Ngungaju plant will be placed on temporary care and maintenance from December 1 which will allow the company to manage current price pressures more efficiently.

Pilbara Minerals highlighted that spodumene concentrate prices, ranging from US$750 to $800 per ton, remain below the sustainable industry benchmark of US$1,400 per ton.

• In the September quarter, the company sold lithium at an average of US$682 per ton, a decrease from US$840 per tonne in the previous quarter.

The demonstration plant at Pilgangoora that would produce lithium salts using Calix’s advanced calcination technology was 60% completed by the end of September this year. Pilbara anticipates these measures will contribute about A$200 million in cash flow improvements for fiscal 2025.

Cutting Capital Expenditure

• MINING.com reported: Pilbara Minerals also revised its production guidance for fiscal 2025 to a range of 700,000 to 740,000 dry metric tonnes (dmt). It’s down from an earlier target of 800,000 to 840,000 dmt.

Meanwhile, it has cut its capital expenditure forecast to between A$565 million and A$610 million, down from a previous estimate of A$615 million to A$685 million.

Managing Director and CEO Dale Henderson,

“Given current lithium price environment, this pause enables the joint venture to time expenditure with improved market conditions. We remain fully supportive of the midstream strategy and our joint venture, recognising the Project’s potential to transform the lithium supply chain through lower emissions and value-added processing. Our commitment to our joint venture with Calix remains. We will assess with Calix resuming the Project as market conditions improve or further government support is received.”

Lithium Glut Lingers, Even as Demand Surges

According to S&P Global Commodity Insights, the lithium market is expected to face a supply surplus until at least 2027. However, this excess supply will maintain low lithium prices until demand rises to balance out the excess.

Data Source: S&P Global

Analyzing the market condition further, the lithium scenario is quite vivid. This rapidly growing demand has attracted new lithium players, but major producers are yet to make significant production cuts.

Explore here to learn everything about what’s happening with lithium now: The Lithium Paradox: Price Plummet, Supply Surge, and Demand Dip – What’s Happening Now?

• MUST READ:  Li-FT Power: Exploring & Developing Hard Rock Lithium Deposits In Canada

The post Lithium Market Lows: How Are Albemarle and Pilbara Minerals Adapting? appeared first on Carbon Credits.

From combating climate change to boosting economic competitiveness, green hydrogen offers multiple solutions to some of today’s biggest challenges. Significantly, it’s a zero-emission fuel that has the potential to transform the automobile industry.

As more countries embark on their hydrogen journey, there’s stiff competition riding for every nation. Governments are apprehensive about not missing out on anything. This means each nation wants to set ambitious goals and is under pressure to keep up.

However, a rush to adopt hydrogen policies without careful consideration can lead to misguided investments. This phenomenon named “siren call,” by IRENA, has a high risk of policy failure if pursued without a realistic assessment of local capabilities and requirements.

Therefore, countries that align their hydrogen strategies with specific policy drivers are most likely to succeed in a robust and resilient hydrogen sector.

Green Hydrogen Strategy: “Silver Bullet” vs. “Champagne” Approach

IRENA has decoded an interesting way to explain the diverse national hydrogen strategies that are in place. The two major perspectives are the “silver bullet” and the “champagne” approaches. Each approach represents a distinct stance on the role of hydrogen in achieving decarbonization goals and informs how policy and investments shape the sector.

The “Silver Bullet” Approach: Hydrogen Everywhere, All at Once

The “silver bullet” approach positions hydrogen as a flexible, wide-reaching solution, with applications spanning from heavy industry to residential heating. Nations that support this approach view climate change as a pressing issue that demands exploring all possible pathways to cut emissions.

IRENA emphasized that this strategy leans on a “free-market mindset”, where policymakers are involved in the following roles:

• balance supply and demand
• set up market structures
• support the development of necessary infrastructure.

Furthermore, the “silver bullet” approach encourages early investments in hydrogen transport and storage. This is because such nations consider adopting these two mechanisms broadly across all sectors.

For example, countries like Australia, Canada, and the United Kingdom often embrace the “silver bullet” approach. These nations, which produce fossil fuels, see potential in developing and exporting blue hydrogen and are already investing in decarbonization across industries.

Having production-based economies and access to advanced technologies, these countries support hydrogen as a key driver of their sustainability goals. All the more, they aim to decarbonize areas like building heating and transportation with the “silver bullet” approach.

The “Champagne” Approach: Hydrogen for Specific High-Value Uses

In contrast, the “champagne” approach is a more cautious way of viewing green hydrogen. Simply put it is considered costly and risky compared to other established solutions. This approach advocates using hydrogen selectively in areas where alternatives are limited or cannot be accessed. The purpose is to avoid diverting resources from the proven technologies that are already being used.

Countries with strong renewable energy resources, such as Austria and Kenya, generally favor this view. For them, the hydrogen strategy focuses on decarbonizing high-energy industries or sectors like aviation and maritime, where electrification remains a challenge.

Elaborating further, the “champagne” approach is a reflection of the industrial policy mindset, with policymakers playing an active role in shaping hydrogen development. In this, investments mainly focus on applications where other decarbonization options aren’t viable.

IRENA revealed that Austria prioritizes hydrogen for high-temperature industrial processes and aviation. The country optimizes hydrogen use within a broader energy transition strategy, making the shift to green energy both practical and sustainable.

A quick summary of these two approaches is below:

Source: IRENA

• READ MORE: Microsoft and ESB Launch Groundbreaking Green Hydrogen Pilot to Decarbonize Dublin Data Centers 

Key Drivers Fueling Green Hydrogen Development

As mentioned at the beginning, various drivers are pushing governments to support green hydrogen. So, what are the main motivators behind hydrogen’s growing role?

The Hard-to-Abate Sectors

While electrification can lower emissions in some areas, certain industries, like steel, cement, and chemicals, are challenging to decarbonize and involve energy-intensive processes. This is why these “hard-to-abate” sectors need alternatives beyond direct electrification. Notably, green hydrogen offers a promising low-carbon solution for this sector.

However, beyond industry use, there are many more economic opportunities through the production of hydrogen-related components, like compressors and control units, etc.

The countries focused on green industrialization- be it through the “silver-bullet” or “champagne” approach are keen to use green hydrogen in their national strategies.

 A Sustainable Economy

Countries that depend on fossil fuels are now looking to green hydrogen as a way to sustain their economies. By using renewable resources, these nations can develop new export markets focused on green hydrogen. Even countries without a long history in fossil fuels are also exploring hydrogen exports to meet rising global demand and diversify their revenue sources.

Subsequently, this shows the flexible nature of hydrogen- meaning it can be produced worldwide. This diversification reduces geopolitical risks and gives nations more control over their energy future.

Another significant thing is energy security, especially for nations reliant on imported fuels. Therefore, developing a robust domestic green hydrogen supply can help these countries reduce imports, stabilize energy prices, and lower their vulnerability to global market changes.

Long-Term Renewable Energy Storage

As renewable energy usage increases, seasonal fluctuations can create power supply issues. Hydrogen offers a solution for large-scale, long-term storage, helping balance renewable power systems.

When energy production exceeds demand, the surplus electricity can be used to produce hydrogen which can be stored for the future. This capability is essential for countries transitioning to renewables, as it helps avoid power waste and reduces risks associated with variable renewable energy supplies.

Image: Common uses of long-term energy scenarios

Improving Urban Air Quality

As hydrogen fuel cell vehicles emit no pollutants they offer a cleaner alternative to diesel and gasoline vehicles. This is especially valuable in cities with high pollution levels.

Apart from the U.S., U.K., and Australia, China is also promoting hydrogen in mobility projects to cut oil dependence and reduce air pollution. This has a direct benefit on public health and the environment.

As these drivers create interest in hydrogen, each country designs its strategy to match its unique energy needs, resources, policy goals, and most importantly its budget. However, the final aim is to create sustainable and resilient hydrogen ecosystems.

Source: IRENA Green Hydrogen Strategy Design 2024

• FURTHER READING: Hydrogen’s Big Leap: Can Electrolyzers and Tax Credits Fuel the Green Revolution?

The post Navigating the Green Hydrogen Hype: IRENA’s Take on the “Silver Bullet” vs. “Champagne” Strategies appeared first on Carbon Credits.

Donald Trump’s recent election win has cast doubt over global climate efforts, with his victory sending ripples through the international community just a few days before the COP29 climate talks in Baku. Trump, who previously pulled the U.S. out of the Paris Agreement, has hinted at doing the same again. This is especially true given his pro-oil and gas stance in climate policy. 

His victory speech highlighted America’s vast reserves of “liquid gold,” emphasizing the country’s oil and gas resources over renewable energy alternatives. This move has caused climate activists to be concerned about how the world’s largest economy will respond to the climate crisis.

America’s “Drill, Baby, Drill” Resurgence with Trump’s Victory

Donald Trump’s victory signals a shift in U.S. climate policy, as he aims to undo numerous environmental actions implemented under Biden. In Dan Eberhart words, CEO of Canary LLC, Trump as the new president means: 

“You are looking at, overall, a ‘drill baby drill’ philosophy.” 

Bloomberg reported that Trump’s plans include reversing EV subsidies, limiting EPA pollution rules, and boosting fossil fuel production. Moreover, Trump could challenge Biden’s Inflation Reduction Act by modifying tax credits for clean energy, potentially making them harder to access or more favorable to fossil fuels. 

• READ MORE: 2024 US Election and The Fate of $1.2 Trillion Climate and Clean Energy Policy

Internationally, Trump may withdraw the U.S. from the Paris Agreement and the upcoming UN Framework Convention on Climate Change (COP29). This would also mean sidelining the nation from climate negotiations while encouraging other countries to weaken their own emission goals. 

Meanwhile, some U.S. states and local governments are preparing alternative strategies to uphold climate progress, including discussions with Chinese officials to maintain subnational climate cooperation. Climate activists and leaders are also strategizing around Trump’s presidency to mitigate potential setbacks to climate action globally.

Will the EU Rise to the Challenge and Take Charge?

Many are now eyeing the European Union (EU) to fill the leadership void with the U.S. potentially stepping back. Climate Action Network Europe’s director, Chiara Martinelli, stressed the EU’s moral responsibility to address climate issues head-on. 

She also pointed out that the EU must support climate action in vulnerable regions, especially in the Global South. Countries in this region suffer the most from climate impacts despite contributing the least to the crisis.

• COP29 is expected to focus heavily on establishing a new financial framework to assist poorer nations with their climate adaptation and transition efforts. 

Laurence Tubiana, a former French climate diplomat who played a key role in the 2015 Paris Agreement, said the situation is reminiscent of Trump’s first withdrawal. However, she noted that today’s landscape is more favorable for renewable energy and environmental policy. This could help keep the momentum going, even without full U.S. involvement.

With Trump’s victory, the EU faces a renewed call to step up as the world’s climate leader. Patrick ten Brink, head of the European Environmental Bureau, noted that Trump’s administration has a record of environmental rollbacks, from weakening protections to supporting fossil fuels. With this, Brink remarked that: 

“With Donald Trump’s re-election, the EU must recognize the urgency of stepping up and scaling up as the global leader in climate and environmental policy.”

To solidify its stance, the EU must maintain a visible presence at COP29 to ensure that it actively participates and leads in policy discussions. Brink emphasized that Europe should also bolster its efforts to move forward with climate initiatives like Fit-for-55 and the European Green Deal. They aim to slash greenhouse gas emissions by 55% by 2030 and achieve net-zero emissions by 2050.

How Does Trump’s Climate Stance Could Impact COP29?

In light of Trump’s apparent opposition to climate action, there are fears that other countries might also avoid commitments if they see the U.S. walking away from the Paris Agreement again. Already, there are reports that leaders from major emitters will not while some may not attend COP29.

Europe’s lawmakers hope the U.S. stance will not derail global climate ambitions. Trump’s influence might inspire some hesitation, but the global shift toward green technology and renewables provides an economic and environmental incentive that is difficult to ignore. 

Adding to these concerns, the recent announcement that European Commission President Ursula von der Leyen will not attend COP29 has sparked debates about EU leadership. French President Emmanuel Macron is also notably absent from the attendee list. 

Nonetheless, the EU Parliament plans to send a delegation, including Dutch lawmaker Mohammed Chahim. He commented on the “troubling signals” from the U.S. but encouraged climate policy advocates not to lose hope.

Chahim pointed out that the U.S. is not monolithic in its climate stance. Despite Trump’s previous exit from the Paris Agreement, American cities, states, and non-governmental organizations continued to engage in climate diplomacy. With green technologies now more affordable and financial incentives linked to emissions reductions, the U.S. may find it challenging to resist the green agenda, Chahim noted. 

With COP29 just around the corner, there’s renewed urgency for the participating nations to act decisively. The conference will attempt to strengthen financial commitments and establish a new goal to support the global south. 

Despite the uncertainty surrounding the U.S. involvement, COP29 organizers hope to secure meaningful agreements, with or without the backing of the world’s largest economy.

• SEE MORE: What is COP29 and Why Is It Hailed as The “Finance COP”?

The post Will Trump’s Re-Election Threaten Global Climate Progress Ahead of COP29 Talks? appeared first on Carbon Credits.

With the U.S. aiming for energy independence Alaska’s mineral-rich deposits could play a crucial role in reducing reliance on imports. In this rise-in-demand scenario, Canadian mining company Alaska Energy Metals (AEM) sees a solution to explore Alaska’s underground deposits of nickel.

Greg Beischer, President, CEO, and Director of AEM, expressed optimism, saying,

 “We should be working harder to increase our domestic resources and secure a domestic supply chain.”

Let’s deep dive into the progress the company is making under Mr. Beischer’s determined leadership and the ambitious plans it has to boost the U.S. nickel supply.

Why Nickel and Other Critical Minerals Are Essential

The U.S. Department of Energy has identified 18 minerals as critical to energy technology and nickel is one of them having paramount importance.

While nickel’s commercial use spans stainless steel production and jet and turbine components, its growing role in EV batteries has elevated its demand. This makes nickel one of the most sought-after materials in the clean energy transition.

Despite its importance, the United States currently lacks a domestic source for nickel production, which represents a significant vulnerability in the supply chain. Thus, establishing domestic nickel production could boost supply chain resilience and support the nation’s transition to a more sustainable economy.

AEM’s Endeavor: Building a Sustainable Nickel Supply Chain

AEM’s flagship endeavor, the Nikolai deposit, is a sprawling 23,000-acre site in Alaska’s southern foothills. This deposit holds not only nickel but also copper, cobalt, platinum, and palladium—all minerals deemed critical by the U.S. Department of Energy.

Mr. Beischer emphasized that Nikolai’s deposits containing multiple metals are essential for boosting the domestic supply chain.

New Resource Estimates and Project Progress

Since AEM began exploring the Nikolai deposit, their findings have surpassed initial expectations. Mr. Beischer noted,

“As a result of the drilling we did in summer 2023, along with the historical information for the project that we had purchased, we were able to calculate a mineral resource estimate that was really quite substantial—in fact, bigger than we had really imagined would be possible.”

• The company’s revised estimates indicate a resource size of 3.9 billion pounds in indicated nickel and 4.2 billion pounds in inferred resources.

These findings mark a significant increase from AEM’s initial projections of around 3 billion pounds.

However, he clarified that the revised estimate does not guarantee the full recovery of these metals. Initial testing has begun, but results show that only about 50 to 55 percent of the metal may actually be recovered.

The company revealed that the 2024 drilling season, which began in July, and covered approximately 4,000 meters is consistent with last year’s scope. However, recent market conditions for nickel held back the project’s expansion.

Mr. Beischer highlighted,

“The flooding of nickel into the market from Indonesia and Chinese-backed operations has depressed nickel prices.”

So, we can see that this supply surge from China and Indonesia has directly impacted nickel prices which in turn affected AEM’s share value and limited the financing options.

He further explained that as a consequence the company has been unable to expand its drilling program as initially anticipated. However, the project is progressing steadily despite the challenges.

The nickel miner remains committed to its goals, gathering data for essential baseline environmental studies. Most significantly, the company is optimistic about achieving the key project milestones. Additionally, it aims to complete a preliminary economic assessment by the end of 2025 and is also considering a pre-feasibility study if all goes in favor.

Securing Funds for Faster Growth

The Nikolai project is crucial for AEM and has immense nickel potential in the future. This is why the company is exploring funding opportunities which also includes applying for a Department of Defense (DOD) grant that could help expedite planning and exploration.

As the project is still in its early development, it aspires to build external partnerships and engage major investors. Mr. Beischer further explained,

“There are no local big investors or any notable company or major funder. It’s a little early. Typically, you’re going to want to see a bit more advancement, like you’ve done at least a preliminary economic assessment before they’d be putting in bigger dollars. Ultimately, we want a strategic partner that can help with the heavier financial interest but also bring expertise that we might not have in-house.”

Mr. Beischer strongly believes that it makes much sense to have the Nikolai Project located on U.S. soil, where the environmental standards are among the highest in the world.

Last but not least, his commitment goes beyond mineral extraction. From a broader perspective, Alaska Energy Metals seeks to fortify U.S. self-sufficiency in critical minerals while contributing to a cleaner, low-carbon future.

• MUST READ: Nickel Market is Changing Big Time: Is a Supply-Demand Shift Underway?

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