What's the difference between lithium hydroxide and ...

What's the difference between lithium hydroxide and spodumene, and which ASX shares are involved with each one?

With competitive prices and timely delivery, Yayang sincerely hopes to be your supplier and partner.

You are reading a free article with opinions that may differ from The Motley Fool's Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Most ASX investors are aware that ASX lithium stocks have been trending on the Australian share market for quite some time. Fueled by the optimism surrounding lithium as a key ingredient in a sustainable future, investors are eager to capitalize on potential profits.

We have certainly witnessed a notable response in the stock prices of some of the ASX's most prominent lithium producers. For instance, the share price of Pilbara Minerals Ltd (ASX: PLS) has surged around 198% over the past 12 months, even considering a 20% decline earlier this year.

While most investors may understand the term 'lithium stocks' or recognize names like Pilbara, fewer might comprehend phrases such as 'lithium spodumene' or 'lithium hydroxide', which are critical for understanding the value of any lithium producer.

Like other metals, lithium cannot simply be extracted from the earth and used in batteries. Producers must extract lithium-infused compounds and ores and then refine them to create high-grade lithium suitable for industry use.

Spodumene and hydroxide: What do they mean for ASX lithium stocks?

According to a report in the Australian Financial Review (AFR), there are two main types of lithium concentrates suitable for batteries: spodumene and hydroxide. Among these, hydroxide is reportedly more challenging to produce. However, it "commands significantly higher prices as battery manufacturers prefer it". In contrast, spodumene concentrate typically contains about 6% lithium, requiring extensive refining to extract usable lithium.

If you wish to learn more, please visit our website Dolomite Powder.

The ASX's largest lithium player, Pilbara, boasts one of the world's biggest spodumene concentrate processing plants and some of the largest hard-rock lithium deposits. Additionally, it has a joint venture with South Korea's Posco to refine 43,000 tonnes of lithium hydroxide each year.

Mineral Resources Ltd (ASX: MIN) is also an active participant in the lithium sector. It is eagerly anticipating the completion of its lithium hydroxide refinery next year, in which it owns a 40% share.

Liontown Resources Ltd (ASX: LTR) generated excitement earlier this year by signing a spodumene supply agreement with US electric vehicle and battery producer Tesla Inc (NASDAQ: TSLA).

Moreover, Wesfarmers Ltd (ASX: WES) owns the Mt Holland mine in Western Australia and aims to produce and refine lithium hydroxide in the near future.

Clearly, the ASX lithium sector is dynamic, and this emerging industry is poised to retain its prominence in the coming years.

Spodumene is a lithium aluminum silicate mineral (LiAlSi2O6) belonging to the pyroxene family. It serves as an essential ore for lithium and a source of ceramic materials, primarily found in lithium-bearing granite pegmatites. When brilliant and glassy, clear spodumene is regarded as a semiprecious gem, valued more by collectors and museums than the general public due to its color fading in sunlight. Its main varieties include hiddenite (emerald green) and kunzite (pink or lilac). The largest spodumene crystal measured 14.3 meters (approximately 47 feet) long and 0.8 meters (about 3 feet) wide, discovered at the Etta mine in South Dakota, U.S.