Sept 25 (Reuters) - Miner International Battery Metals

said on Wednesday it would suspend operations at its

modular direct lithium extraction (DLE) plant at private firm

U.S. Magnesium until the metal's prices recovered.

U.S. Magnesium, a producer of magnesium, uses IBAT's lithium

chloride to make lithium carbonate for sale to battery makers.

IBAT's move comes amid a more than 80% drop in lithium

prices in the past year largely due to overproduction from China

and a drop in demand for electric vehicles.

The weak pricing environment has led to companies like

Chinese battery giant CATL suspending production at

certain mines. Albemarle, the world's largest lithium

miner, made a second round of cost cuts earlier this year and

laid off people, while Piedmont Lithium ( PLL ) also withdrew

its loan application to fund mine development to conserve cash.

IBAT in July launched its DLE technology to commercially

produce lithium, competing with Standard Lithium ( SLI ), SLB

, Rio Tinto and others to be the first to use

the novel method.

"Since the beginning of June, there has been significant

weakness in pricing," said Iris Jancik, chief executive officer

of IBAT.

"We still expect the lithium market to grow and are

optimistic we will see better conditions in 2025."