Chinese producers of lithium they are doing dumping. They are flooding the world market with more than the demanded quantity of this essential metal for the manufacture of electric car batteries, according to the Undersecretary of Economic Growth, Energy and Environment of the United States, José Fernández.
Chinese producers who control most of the lithium extraction and refining are thus driving down prices to try to eliminate rival projects.
Whoever produces 80% of the world’s refined lithium can set the prices
In a briefing held during his visit to Portugal, he assured that China is producing much more lithium “what the world needs today, by far.” And he added: “They practice dumping, they lower the price until the competition disappears.”
Although lithium comes mainly from Australia, Chile and China, the Asian giant, on the other hand, has managed to gain a share of the 80% of global refined lithium production.
This dominance, fueled by strategic government support and meticulous vertical integration, has positioned China as the epicenter of lithium-ion battery production and refining. In other words, China can set prices for lithium for use in batteries as it pleases. And currently, to try to stifle the competition, it pushes prices down.
He lithium has seen his fall precio significantly in the last year. He price per ton has gone from $24,600 per ton in October 2023 to just over $10,800 per ton in October 2024.
This drop in prices has hit Australia, the world’s largest producer of lithium mineral, especially hard, with 52% of the world’s total last year. It is also the second country, after Chile, with the largest reserves of this mineral. And the sharp drop in lithium prices has already caused the closure of several mines in Australia, with the loss of hundreds of jobs.
On the other hand, the lower price of lithium should have an impact on the price of batteries with a drop in price and therefore on the price of electric cars. The global average price of an electric car battery fell from $153 per kWh in 2022 to $149 in 2023. But the price of electric cars has not really dropped.
Some manufacturers have significantly lowered the price of some of their models, such as Toyota, with the bZ4X, or Tesla, with the Model 3, but most brands have barely lowered prices or keep them high, up to 10,000 euros more than the equivalent gasoline model. The reason, paradoxically, must be found in the low demand for electric cars.
In August 2024, sales fell 21% compared to the previous year, according to ACEA data. With a declining electric car market in Europe, some brands do not want to lose margin with the aim of recovering the investment in electric cars, or in any case, minimizing losses.
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Source: www.motorpasion.com
