Allkem (ASX:AKE) today announced June qtr price for carbonate from their Olarez facility in Argentina was $41,033/t - up 51% over the March qtr and up 384% over the same qtr last year. Guidance was $40,000/t. Only 45% of sales volume was battery grade (the balance being lower "industrial" grade), although in this market there probably isn't much difference in pricing between the two. They have guided to Sept qtr pricing being "similar".

The cash COGS was $4,300/t (excluding royalties and taxes) = gross margin of 90%. 

To put these prices into context, the capital cost for Cauchari Olarez is about $20,000/t of capacity. The payback period (after cash COGS) is less than 7 months (at full/stabilised production). Just think about that for a minute!!

Clearly there is a strong market for lithium chemicals that are not battery grade - and which require further processing (in China). That is good news for LAC, because a significant % of CO production in the intial months will be lower grade, and anyway not "qualified" by customers. Looks like that wont matter too much.