Lithium Prices Rise Sharply, Reviving Argentine Projects and Supporting Portugal's Boticas Mine

International lithium prices rebounded in May 2026, with battery‑grade lithium carbonate reaching US$24,000 per tonne, the highest level since December 2023. The price surge followed temporary supply interruptions in China, a export ban on raw mineral in Zimbabwe and reduced output forecasts from Australian producers. Average prices from January to May 2026 were US$19,358 per tonne, and futures on the Guangzhou Futures Exchange briefly touched US$30,000 per tonne.

In Argentina, the price recovery aligns with a projected 48 % year‑on‑year increase in output to about 172,000 tonnes of lithium carbonate equivalent (LCE) in 2026, driven by eight operating projects in Salta, Jujuy and Catamarca. Higher margins improve the economics of existing operations and make new and expansion projects more attractive, especially as demand for electric‑vehicle batteries and grid‑scale storage grows.

Portugal’s Boticas lithium mine, operated by Savannah Resources, says it can sustain operations even under severe market stress. The mine’s production cost is estimated at US$473‑646 per tonne, allowing it to remain profitable after lithium prices fell to as low as US$600 per tonne and later recovered to around US$2,200 per tonne. The company has secured long‑term contracts for 75 % of its output and is acquiring additional land to expand the project, emphasizing preparedness for continued price volatility.