Tianqi Lithium warns of US$1 billion loss on price slump, halt to Australian expansion

A decline in profit at the firm’s Chilean unit, forex losses and asset impairments contributed to the poor results in 2024

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Chengdu, Sichuan province-based Tianqi Lithium is one of the world’s largest producers of lithium-ion battery materials. Photo: Shutterstock

Published: 12:59pm, 24 Jan 2025Updated: 4:23pm, 24 Jan 2025

Tianqi Lithium, one of the world’s largest producers of lithium-ion battery materials, warned of a worse-than-expected loss because of a prolonged slump in prices and impairments to cease expansion in Australia.

The Chengdu, Sichuan province-based company said in a filing to the Hong Kong stock exchange on Friday that it expected to post a net loss of 7.1 billion yuan (US$978.3 billion) to 8.2 billion yuan for last year. The company made a profit of 7.29 billion yuan in 2023.

Tianqi’s shares fell as much as 3.5 per cent, before erasing losses to close 1.3 per cent higher at HK$23.20. The Hang Seng Index rose 1.9 per cent.

“Although the production and sales volume of the company’s lithium compounds [achieved growth], the overall price experienced a significant downtrend due to market volatility,” Tianqi said.

Tianqi’s Kwinana lithium hydroxide processing plant in Australia. Photo: Tianqi Lithium

Tianqi said a substantial profit decline at its overseas unit Sociedad Quimica y Minera de Chile, unfavourable foreign exchange losses due to the strength of the US dollar and major asset impairments owing largely to a decision to halt a project’s expansion in Australia contributed to the annual loss.