Lithium Supply Grows - ACS Publications - American Chemical Society

STATISTICAL PICTURE on supply and demand for lithium chemicals is obscured by a general unwillingness of the producers to say boo. Because of the ...
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drogen bomb program threw a cloak around the subsequent lithium expansion by Foote, Lithium Corp. of America, and American Potash & Chemical. However, a study of t h e literature and appraisal of these programs produces an estimate of industry capacity of 3 8 million pounds, to b e realized on completion of the San Antonio plant as well as t h e current Sunbright expansion. Commercial requirements of lithium chemicals are estimated at 9 million pounds in 1955 with lubricating grease and ceramics each accounting for about 3.5 million pounds. Consumption in 1951 was only 3 million pounds. T h e growth rate in commercial markets is still strong, but there is still a sizable gap between current consumption of 9 million pounds a n d capacity realizable* a year from now of 38 million pounds. While the AEC has stimulated much of lithium capacity expansion, the impression left by Thirring and others is that A E C consumes only Li° or perhaps 1 5 % of t h e lithium supplied, allowing for the inevitable processing losses. If the remainder is returned to commercial markets, t h e lithium oversupply will be enormous and b y horseback calculation could be figured at double the consumption. • Lithium Prices. O n e thing is certain and that is that lithium prices are on the way down. T h e r e has already been one reduction this vear in lithium

BUSINESS Lithium Supply G r o w s Production n o w is in a p p r o x i m a t e b a l a n c e with d e m a n d , but surplus supplies e x p e c t e d next y e a r STATISTICAL

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Physics, Vienna, Austria, speculated at recent meetings of the National Industrial Conference Board that hydrogen bornba of today may use nuclear reactions involving hydrogen isotopes as well as the light isotope of lithium, L,iu, l i e says that possibly the fusion reaction can be maintained only with LiB which constitutes only one thirteenth of lithium as found in nature. • Government Expansion. In June 1952, the Defense Production Administration annniinrpfl a production cmal for the lithium chemicals industry by 1955 of 10 million pounds of lithium carbonate annually. At that time capacity was approximately 5 million pounds divided among four producers. Shorty* thereafter, Foote Mineral started construction of a plant at Sunbright, Va., with an announced capacity of 5.3 million pounds of lithium carbonate equivalent. The initiation of the hy-

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demand for lithium chemicals is obscured by a general unwillingness of the producers to say boo. Because of the contract commitments with the AtomicEnergy Commission and the classified nature of the stuff, no one in the industry* is willing to subject himself to penalties of commission, which include a jail term. One producer who shall be "nameless hazards the guess that supply and demand are in approximate balance so far as commercial uses go, but that the advent of American Potash with newcapacity a t San Antonio, Tex., will provide ample supply* for all known commercial uses. Military- requirements are of course classified, but there is general speculation that lithium is required for the thermonuclear reactions. No less a n authority than Hans Thirring. director. Institute for Theoretical

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carbonate price, and lately American Potash has b e e n offering 1956 contracts at lower price structures than now quoted. Substantial i m p r o v e m e n t s in efficiencies in t h e new plants are possible, and as flotation mills can t u r n out higher lithia concentrates, t h r o u g h p u t of chemical processing plants can b e elevated. Basic costs b e l i e v e d possible by these large plants a r e t h o u g h t to be substantially under 50 cents a p o u n d of carbonate. • Foote Mineral. A s possessor of about 4 0 % of industry lithium capacity, Foote has concentrated efforts at the Sunbright plant which has been under cuntinuous construction since 1952. No sooner was the first p l a n t finished than another round of construction designed to more than double p l a n t capacity was begun. Construction delays and piping foul-ups lengthened the program, and capital expenditures c o m p a n y - w i d e will continue in 1956 at t h e current year's rate of $3 million. • Lithium Corp. The Bessemer City, N . C , plant charges spodumene ore of 1.4% lithia direct to process without intermediate concentration and enjoys very good over-all efficiency and yield. Even though t h e plant h a s not as yet attained capacity operation, processing costs are indicated to b e substantially u n d e r those figured for design operation. • Earnings Up. Sales for 1955 will show substantial gains over $ 3 million a year ago and are currently running at a $12 million r a t e . Earnings are likewise far ahead of last year's 41 cents a share. Lithium Corp. capacity may be placed at about 3 0 % of industry total, a n d might be susceptible to expansion if intermediate processing of spodumene were a d o p t e d at Bessemer ' City. • American Potash. L i m i t e d to byproduct output of a b o u t 1.5 million pounds at Searles Lake, Calif., American Potash organized a $6.6 million lithium chemicals plant a t San Antonio to process lepidolite ore imported from Rhodesia. T h e plant w a s scheduled to begin operations on Nov. 18, utilizing a relatively n e w process. The companywill provide an estimated 2 5 % of industry capacity. An expansion of lithium consumption in n e w areas can b e visualized in such outlets as lithium hypochlorite dry bleach, lithium fluoride or carbonate as an additive for aluminum production in the bauxite-cryolite b a t h , and as an intermediate chemical for the manufacture of boron hydrides. CHART CREDITS: Employment (Chemicals)— D e p a r t m e n t of Labor; Electric Power, Exports, Glass Containers—Department of C o m m e r c e .

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