...and this is another factor explaining the disconnect between EV growth and the flagging lithium price
...with more EVs sold in EU (providing EV growth in EU) coming from cars made in China, the bulk of lithium demand will come from and within China even if EVs continue to grow globally.
...and China still has ample EV battery oversupply to wind down along with lithium mines from Africa which it owns to tap on, spot lithium price would like remain in the doldrums for a much protracted period that lithium stale bulls continue to deny acknowledging.
...get this, China will want to keep lithium prices as low as possible so it can pursue their EV global domination seamlessly without at the expense of their bottom line.
...lithium market participants can continue blaming shorters and China manipulation for as long as they like, but yet subject themselves to harm's way from their actions. Understanding macro developments that are unfolding suggest the long case would only likely see continued headwinds and pain ahead.
20% of EVs sold in Europe are made in China.
The thought that this number could further grow in addition to increase EV penetration rates, explains the panic created in the once EV promoting EU.
Considering that these same China made vehicles are sold at 1/2 de price in China and that they could be prices similarly in Europe... total nightmare for European OEMs. To respond to this threat: protectionism + delay zero emission targets.
