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China is facing a lithium shortage due to a number of factors, including:

• The increasing demand for lithium-ion batteries for electric vehicles (EVs). China is the world's largest market for EVs, and demand is expected to continue to grow in the coming years.
• The limited availability of lithium resources. Lithium is a relatively rare element, and most of the world's reserves are located in politically unstable countries, such as Bolivia and Chile.
• The high cost of extracting lithium. Lithium is difficult and expensive to extract from its ores.

As a result of these factors, the price of lithium has been rising steadily in recent years. In 2022, the price of lithium carbonate reached an all-time high of over $60,000 per ton. This price increase is likely to continue in the coming years, as the demand for lithium continues to grow and the supply remains limited.

The lithium shortage is a major challenge for the global EV industry. It is estimated that the EV industry will need to secure an additional 500,000 tons of lithium per year by 2030 to meet the growing demand. There are a number of ways to address this shortage, including:

• Developing new extraction technologies that make it easier and cheaper to extract lithium from its ores.
• Investing in new lithium mines in countries with stable political environments.
• Recycling lithium from used EV batteries.

The lithium shortage is a complex issue, and there is no easy solution. However, it is clear that the global EV industry needs to take steps to address this shortage if it is to continue to grow in the coming years.

Here are some additional things to consider:

• The lithium shortage is not just a problem for China. It is a global problem that is affecting all countries that are involved in the production of EVs.
• The lithium shortage is likely to have a significant impact on the price of EVs. As the price of lithium rises, the cost of making EVs will also rise. This could make EVs less affordable for consumers and could slow the growth of the EV market.
• The lithium shortage is also a challenge for the environment. The extraction of lithium can have a negative impact on the environment, and the recycling of lithium batteries is also a challenge.

The lithium shortage is a complex issue with no easy solutions. However, it is an important issue that needs to be addressed if the world is to transition to a clean energy future.