Australian spodumene miners see Q2 output, sales rise despite weak price environment

Spodumene production in Australia and Canada rose in the second quarter of 2025, with most producers maintaining profitability despite falling prices. However, several high-cost operations remain inactive amid ongoing market uncertainty.

Key takeaways:

  • Spodumene production in Australia and Canada rose 15.3% in Q2 2025, with sales up 25% due to deferred shipments and plant expansions
  • Most Australian miners stayed above break-even despite a 20% drop in prices, supported by relatively low operating costs
  • Some high-cost operations remained idle or unprofitable, highlighting continued pressure in parts of the market

Australian and Canadian spodumene miners ramped up production and sales in the second quarter of 2025. The majority of the production is still considered above break-even costs despite falling realized sales prices.

Why is spodumene production in Australia and Canada rising in 2025?

Quarterly output increases across key spodumene miners

Quarterly spodumene production volumes from five producers — Australia’s Mineral Resources, Pilbara Minerals (PLS), IGO, Liontown Resources, and Canada’s Sayona Mining — totaled 850,725 dry metric tonnes (dmt) in the second quarter of 2025. This volume is up by 15.3% quarter on quarter. This increase is based on company filings published July 29-30.

Sales volumes surge on deferred shipments and expansion

Sales volumes rose more sharply, climbing 25% to 927,165 dmt, driven in part by deferred shipments and strategic sales timing.

Individual miner performance reflects strategic shifts

IGO, part-owner of the Greenbushes lithium operation via its joint venture with Tianqi Lithium and Albemarle, said its sales volumes rose 12%. This increase came “as delayed shipments from the prior quarter were fulfilled.”

PLS delivered a 72% jump in sales on the quarter to 216,000 dmt. This growth was supported by the recent expansion at its Pilgan Plant concentrator. Though the average grade shipped fell temporarily to SC5.1% Li2O.

Liontown sold 97,330 dmt, up by 4% on the previous quarter. This was as it continued to draw down stockpiles ahead of a transition to underground mining.

Mineral Resources saw a modest sales lift to 135,000 dmt. Canadian miner Sayona posted the sharpest increase, with sales up 148% to 66,980 dmt, after skewing shipments toward the quarter to capture stronger forward contract prices.

While output and sales climbed, realized sales prices reported by producers fell sharply on the previous quarter. This situation exposed higher cost operators to more sustained margin pressure.

Realized average sales prices can vary, depending on the spodumene grade sold and the structure of long-term contract formulas basis Price Reporting Agency (PRA) spot price assessments. Also, how much spot sales make up each individual miners’ quarterly sales can impact this variation. Additionally, variation arises from individual company definitions and reporting convention regarding average sales prices and operating costs.

Fastmarkets’ daily assessment for spodumene min 6% Li2O, spot price, cif China averaged $700.61 per tonne at the midpoint over April-June. This price is down by 20.07% from an average of $876.48 per tonne over January-March.

The spot price was last assessed at $700-760 per tonne on Thursday, July 31. This was down from $747-800 per tonne on Wednesday. However, it was up from a 2025 low of $595-630 per tonne in early June.

How are spodumene miners coping with falling prices and margin pressure?

Sayona Mining, still ramping up its North American Lithium operation in Québec, operated below break-even in April-June 2025. The company reported an average realized sales price of $682 per dmt. However, they incurred a unit operating cost of $791 per dmt.

Otherwise, production at the four Australian miners still appears to be above break-even at recent price levels during the April-June quarter. However, a true like-for-like comparison remains challenging, given the lack of standardization in reporting from spodumene miners.

Mineral Resources’ Mt Marion operation achieved a realized average price of $607 per dmt on an SC6.0% basis. This price was above its FOB production cost of $459 per dmt (estimated conversion from Australian dollars).

Its Wodgina asset fared better, achieving a realized price of $674 per dmt on an SC6.0% basis. It had an FOB cost of $441 per dmt.

Pilbara Minerals also remained comfortable, with a reported FOB cost of $397 per dmt. It’s unclear if this refers to SC5.1% or SC6.0%. However, a realized price of $703 per dmt on an SC6.0% basis was achieved.

Liontown also maintained positive margins, with a realized average sales price of $740 per dmt on an SC6.0% basis and a cost of $576 per dmt. The grade is unspecified but may refer to SC5.2%. Both its realized price and unit costs moved higher in the quarter due to operational changes.

These figures can indicate which operators could absorb further pressure, should spodumene prices fall further.

What challenges still limit spodumene production despite the ramp-up?

Despite the ramp-up in production, several hard rock lithium production sites remain offline. These sites remain inactive, pending an improvement in market conditions for miners.

Core Lithium, which suspended production at its flagship Finniss Lithium project in January 2024, completed a restart study. They added that it “continues to maintain a stockpile of approximately 5,000 tonnes of spodumene concentrate and 75,000 tonnes of lithium fines.” These remain available for sale should market conditions improve.

Mineral Resources’ Bald Hill lithium mine, Rio Tinto’s Mt Cattlin spodumene operation and Pilbara Minerals’ Ngungaju plant all remain on care and maintenance.

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