That's the supply side of the equation, but what about the demand? EV's need to be affordable with large recharging infrastructure. I'm not a fan of subsidies at all (especially for AGW BS), but if they must then perhaps these subsidies are misdirected to the wrong side of the supply vs. demand balance.
That policy is a political stunt to create govt. subsidised fake jobs during election time for a market without the demand - i.e. a taxpayer funded election bribe. If you want to sell more lithium then you need to improve demand by making EV's cheaper and more convenient to use. If they wanted to increase EV use they would subsidise the cars themselves or the recharge infrastructure, not the production.
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