PLS chart, page-2840

Lol, no. Evergrande's EV division is tiny part of lithium market.

But here is crash course in how markets and economy works:

-Lehman brothers defaults on some $50b debt bonds out of it's massive $600b debt.

-Few weeks later:
Chrysler, Ford, Chevrolet are firing thousands of people, slashing production, closing factories and filling for bankruptcy protection.
French and German presidents are meeting at 3am with European auto-manufacturer CEOs and working on bailout package.
Japanese manufacturers are slashing production and closing plants all around the world.
Parts suppliers and manufacturing logistics companies are filling for bankruptcy protection.
And so on.
And just like that: $8 trillion worth of wealth is erased in few weeks, millions are left jobless, bankrupt and/or homeless.

Even tho nobody knows which event will trigger cascade of debt defaults, everyone knows it will happen eventually 100%.
So when market sees something like Evergrande which has all the ticks for potential black swan event: it reacts by offloading everything.
Because if it is black swan event: just like Lehman didn't buy cars and Evergrande isn't buying all the lithium, others who do will also be affected.

Until market becomes confident that Evergrande isn't black swan event: everything will be on the chopping block, I'm afraid.