(Reuters) -Benchmark Mineral Intelligence, a UK-based data and pricing research firm for energy transition minerals, has cut at least a fifth of its workforce in recent weeks, three people familiar with the company said.
The 11-year-old company had expanded rapidly in recent years along with growing market interest in lithium, copper and other minerals needed for electric vehicles and other clean energy uses.
The layoffs include at least 40 people at Benchmark, the three sources said, out of a total workforce of 200 people. Two of the sources said the affected departments included sustainability, sales and marketing.
Chief Executive Andrew Miller in an email to Reuters said the company had undergone a “recent restructuring.” He declined to comment further on questions from Reuters about the reductions.
“This process is part of our ongoing efforts to strengthen the quality and delivery of Benchmark’s offering, focused on further investment in our AI technology and capabilities,” he said.
One source cited weak mineral prices, especially lithium metal for batteries, as a drag on the business of Benchmark, whose clients include miners, battery makers and politicians.
Lithium prices have plunged from their peak in 2022 due to slower-than-expected adoption of electric cars.
In a Benchmark research note posted on its website last week, the company said it expected a sharp decline in U.S. electric vehicle sales in the final quarter of the year. He added that other challenges, such as high manufacturing costs and rising tariffs, are leading some automakers to scale back electric vehicle production plans into next year.
Privately held Benchmark bought electric vehicle market research firm Rho Motion last year, creating a combined company of 250 employees.
In addition to lithium, Benchmark tracks prices and other market data for copper, cobalt, nickel, graphite, rare earths, manganese, fluorspar and phosphate.
(Reporting by Daina Beth Solomon in Santiago, Pratima Desai in London and Ernest Scheyder in Houston; Editing by Christian Plumb and Matthew Lewis)