Lithium . Prices, subsidies, and tariffs. FYI....16 Aug 2024 09:38
Lithium carbonate prices fell to CNY 80,000 per tonne in August, the lowest in over three years, amid increasing concerns of oversupply. Lithium miners and producers continued to expand capacity and hunt for new reserves, with market players expecting global supply to soar by nearly 50% this year. This magnifies the current supply surplus amid the fallout of battery gluts due to government subsidies for firms across the supply chain. Additionally, hopes of eventual balance in the market drove Chile to signal it would aim to double output over the next decade. Further adding to the bearish pressure, the EU put barriers on Chinese EV producers with tariffs of up to 38% in response to subsidies-supported dumping starting this week. The measures added to sweeping tariffs from the US, which quadrupled duties on Chinese EVs to 100%, pushing against input materials for battery producers. This contributed to the 15% drop monthly drop in Chinese new energy vehicle exports in June.