Galaxy Resources will scale back shipments from its flagship Mt Cattlin mine by up to 48 per cent, as weak global demand for lithium continues.
The embattled miner said it shipped 58,278 dry metric tonnes of lithium concentrate in the September quarter, below its guidance of between 60,000 dmt and 70,000 dmt.
For the final quarter of the calendar year it is targeting shipment volumes of between 30,000 dmt and 40,000 dmt.
Galaxy said the ongoing US-China trade dispute and weaker-than-expected growth in China had dampened its short-term outlook for the electric vehicle and lithium-ion battery market.
"A soft quarter in Chinese new energy vehicle manufacturing production, as well as subdued deliveries in the US were core contributors to the weakness in lithium demand during Q3 2019," it said.
However, it was optimistic about the longer-term outlook for the lithium industry, pointing to Europe as burgeoning market for electric vehicles.
In the September quarter, fellow Western Australian lithium miner Alita Resources went into administration, with Galaxy as its largest shareholder appointing receivers immediately after.
Today, Galaxy said it continued to work with the receivers and administrators of Alita, with the parties to convene for a creditors meeting on December 11.
Shares in Galaxy were down 0.94 per cent to trade at 84 cents each at 3.35pm AEDT, its lowest since February 2016.
It was trading at $2.26 one year ago.
