IMO thats what the Chinese want, theres a shortage of battery production but i believe chinese are halting the hydroxide conversion to create oversuplly and finacial stress in Aussie Lithium producers so the chinese can buy them out or hold large stakes in them.
Once the chinese have financial control of the Australian Lithium mines, the will fix the bottleneck problem.
All at the expense of Aussie shareholders who fronted up the capital and risk to get the mines into production.
I might be wrong but thats my current opinion of the Chinese strategy
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