HOUSTON, July 28th (Argus) - Australian lithium producer Elevra Lithium has shortened the sales quotation cycle for lithium concentrate (lithium oxide) and expects the transaction prices for the 7-9 month quarter to reflect the current market level.
Elevra achieved an average FOB price of lithium oxide of $921 per ton in the 4-6 month quarter, which was lower than the transaction price in the 1-3 month quarter and also lower than the spot price for the same period. The company stated in its earnings call on July 27th that the previous contracts used a pricing formula based on hydroxide lithium from October 2025 to March 2026, so the delivery in the 4-6 month period failed to reflect the strong trend of the lithium oxide market.
According to the original contract, the last batch of goods was delivered in June. The new quotation terms have significantly shortened the lag time. One type is settled based on the price of the month of shipment, and then the goods are transported by sea for about two months to reach the customers. The second type is finally settled at the average price of the delivery month. Chief Financial Officer Christian Cortes said.
The company ships twice a quarter, once at the beginning of the quarter and once at the end of the quarter, so the quarterly average of the index should roughly match the actual results. Cortes expects there to be two shipments of goods each quarter, with a total volume of 5-60,000 tons.
Elevra sells some of its products through Mitsubishi distributors. Cortes said: "There is no discount in price, but there is a commission." This fee is not a fixed percentage but varies with the price and profit margin, and the FOB price reported by Elevra has already deducted this fee.
