Galaxy Resources Limited (ASX:GXY) Welcomes 20% Lithium Price Increase By Chemetall
Perth, June 17, 2011 AEST (ABN Newswire) - Galaxy Resources Limited (
ASX:GXY) (PINK:GALXF) is pleased to announce it is to revise upward its 2011 and 2012 budgeted lithium price forecasts.
Rockwood Holdings' Inc. (NYSE:ROC) lithium division Chemetall Lithium (Chemetall) announced Thursday a price increase of up to 20 percent for its lithium salts, including lithium carbonate, lithium hydroxide, lithium chloride, and increases on lithium metal battery grade, effective July 1, 2011.
Chemetall Lithium is one of the largest global manufacturers and suppliers of lithium-based compounds.
In a statement, Rockwood said the price increases would see lithium carbonate and lithium hydroxide prices return to 2008 levels.
Galaxy Resources Managing Director, Iggy Tan said: "Our own modeling forecasted lithium prices to return to pre-GFC levels in the next 12 months due to the significant rise in demand".
"We now see this occurring sooner than expected, and we welcome the demand growth and corresponding signals of price increases in the global lithium market," he said.
About Galaxy Resources Limited
Galaxy Resources Limited (ASX:GXY) (OTCMKTS:GALXF) is an international S&P / ASX 200 Index company with lithium production facilities, hard rock mines and brine assets in Australia, Canada and Argentina. It wholly owns and operates the Mt Cattlin mine in Ravensthorpe Western Australia, which is currently producing spodumene and tantalum concentrate, and the James Bay lithium pegmatite project in Quebec, Canada.
Galaxy is advancing plans to develop the Sal de Vida lithium and potash brine project in Argentina situated in the lithium triangle (where Chile, Argentina and Bolivia meet), which is currently the source of 60% of global lithium production. Sal de Vida has excellent potential as a low cost brine-based lithium carbonate production facility.
Lithium compounds are used in the manufacture of ceramics, glass, and consumer electronics and are an essential cathode material for long life lithium-ion batteries used in hybrid and electric vehicles, as well as mass energy storage systems. Galaxy is bullish about the global lithium demand outlook and is aiming to become a major producer of lithium products.
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