Prix des minéraux : cadre de détermination des prix de transfert du lithium

The document outlines a technical framework for the valuation of lithium products—including brines, minerals, and chemicals—to ensure fair taxation in multinational mining operations. It details the physical characteristics of lithium deposits, the production processes for lithium carbonate and hydroxide, and the specific contractual elements that influence pricing. A significant portion of the guide is dedicated to analyzing price indices from major agencies like Argus Media, Fastmarkets, and Benchmark Mineral Intelligence, providing tax administrations with a methodology to adjust for product quality, economic circumstances, and delivery terms.

• The Comparable Uncontrolled Price (CUP) method for lithium sales between related parties must consider three primary economic factors: product characteristics (physical properties and quality), economic circumstances at the time of the contract, and contractual terms (quantity, transport, payment, and refining costs).
• Lithium is primarily extracted from two commercial sources: brines and hard-rock minerals. Brine deposits are most prevalent in Bolivia, Argentina, Chile, and the US, while mineral deposits are dominant in Australia, China, and the DRC.
• The production of lithium chemicals differs by source: brine extraction typically produces lithium carbonate first, which can then be processed into lithium hydroxide via 'causticization' (chaulage). In contrast, mineral refining can produce either carbonate or hydroxide at a similar cost without requiring the other as an intermediate.
• Demand for lithium is heavily driven by the electric vehicle (EV) market, where lithium represents 75% to 85% of the raw material costs for cathode production. While lithium carbonate is used for low-nickel cathodes, lithium hydroxide is used for high-nickel cathodes.
• Lithium quality is categorized into 'battery grade' (typically 99.5% purity) and 'technical/industrial grade' (typically 99% purity). Battery grade lithium requires longer qualification processes and generally commands a spot price premium of 1 to 2 USD/kg over technical grade.
• Lithium sales contracts have shifted from fixed pricing (common until 2016) to variable pricing linked to indices from agencies such as Benchmark Mineral Intelligence, Fastmarkets, or S&P Global Platts, often with premiums or discounts ranging from -15% to +5%.
• For mineral concentrates like spodumene, pricing is primarily determined by the lithium oxide (Li2O) content. Prices are typically based on a standard 6% Li2O product and adjusted linearly if the actual content differs, provided it meets a minimum threshold (e.g., 5%).
• The lithium market is highly concentrated, with a small number of producers (such as Albemarle, SQM, and Livent/Allkem) and a high concentration of refining capacity in China, which processes nearly all Australian spodumene.
• Tax administrations should use price indices as a starting point but must adjust for the specific delivery terms (Incoterms) used, such as CIF (Cost, Insurance, and Freight) for international shipments to Asia or EXW (Ex Works) for domestic Chinese sales.

APA

Taquiri, J., Lassourd, T., & Viola, A. (2024). Prix des minéraux : cadre de détermination des prix de transfert du lithium. International Institute for Sustainable Development. https://www.iisd.org/system/files/2024-09/determining-the-price-of-minerals-framework-lithium-fr.pdf

Chicago

Taquiri, Jaqueline, Thomas Lassourd, and Andrew Viola. Prix des minéraux : cadre de détermination des prix de transfert du lithium. International Institute for Sustainable Development, 2024. https://www.iisd.org/system/files/2024-09/determining-the-price-of-minerals-framework-lithium-fr.pdf.

Wikipedia

{{cite report |last1=Taquiri |first1=Jaqueline |last2=Lassourd |first2=Thomas |last3=Viola |first3=Andrew |title=Prix des minéraux : cadre de détermination des prix de transfert du lithium |publisher=International Institute for Sustainable Development |date=2024 |url=https://www.iisd.org/system/files/2024-09/determining-the-price-of-minerals-framework-lithium-fr.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{taquiri2024prix, author = {Taquiri, Jaqueline and Lassourd, Thomas and Viola, Andrew}, title = {{Prix des minéraux : cadre de détermination des prix de transfert du lithium}}, institution = {International Institute for Sustainable Development}, year = {2024}, url = {https://www.iisd.org/system/files/2024-09/determining-the-price-of-minerals-framework-lithium-fr.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }