Lithium Price Assessment Methodology

Download Lithium Price Assessment Methodology

Introduction

Benchmark Mineral Intelligence (Benchmark) strives to create methodologies that accurately reflect the market dynamics of the industries we cover and allow for independent data collection, free of distortion or misrepresentation.

In the lithium market, we have identified 11 prices that best reflect the existing balance of production and trade flows, details of which can be found in the Price Definitions section of this document (section 3).

These prices include the most commonly traded lithium feedstock material, spodumene concentrate, as well as the two primary chemical products used in the battery supply chain: lithium carbonate and lithium hydroxide.

Prices for each of these products have been broken down into the geographies across which they are most commonly traded in order to provide a comprehensive global picture of pricing, encompassing the specific market dynamics across regions where notable differences in pricing exist.

Lithium is a non-exchange traded speciality product, where prices are negotiated privately between buyer and seller. In addition, unlike traditional commodities a large part of the price discovery process is centred around the downstream conversion and refining of these products for specific end-users.

Benchmark has developed a robust price discovery mechanism which focuses on primary data collection from different sources along the supply chain in order to build an informed and robust perspective of the market. Due to the opaque nature of the industry, Benchmark employs expert analysts to collect an interpret this information, using editorial expertise to assess the information received.

This methodology describes the process by which Benchmark assesses lithium market prices, the definitions and specifications used in each of the prices/indexes we publish, the standards our analysts adhere to in price collection, and our compliance, security and complaints process.

The information we publish is distributed directly to subscribers and also made available via our website for authorized users/licensers. The timing and delivery of this information is outlined in section 1.3.

To ensure the data we publish is accurate, delivered on time and compliant with regulatory principles, Benchmark applies a number of failsafe processes that are outlined in this document to allow problems to be rectified when and if they occur.

Benchmark methodologies are created and updated in line with developments in each of the specific markets we cover. As the industries we follow evolve, we update the prices we publish and the process we adhere to in order to ensure the most accurate and relevant prices are made available to the market. A full history of revisions to our methodology can be found in section 7.

All Benchmark methodologies are tailored to the markets they cover and reflect Benchmark’s commitment to independent and accurate price reporting.

You can read the full contents of the Lithium Pricing Assessment Methodologies here