Arcadium Lithium (ASX:LTM) has announced it will suspend expansion plans for its Mt Cattlin spodumene operation in Western Australia. Reacting to ongoing declines in spodumene prices, the company has put the site on care and maintenance after concluding Stage 3 mining by mid-2025.

Arcadium, established a year ago through the merger of Allkem and Livent, takes this step as similar companies reassess their strategies. Falling nickel prices have impacted companies like BHP and First Quantum, putting some WA operations on hold.

In a statement, Arcadium revealed that ceasing expansion beyond Stage 3 could increase net cash flow by up to $US100 million for 2024-2025.

Spodumene Market Challenges

Other entities such as Albemarle and Pilbara Minerals are also cutting spending in WA amidst these market conditions. Arcadium hopes the care and maintenance approach will preserve mine facilities until potential improvements.

Future Prospects for Arcadium

Despite Arcadium’s commitment to underground mining feasibility studies at Mt Cattlin, the likelihood diminishes as industry cutbacks prevail. CEO Paul Graves emphasized transparent communication amidst the current price environment for the spodumene market.

The company maintains operations across several countries including Argentina, Canada, and China.

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