China Lithium Prices Near Record as Power Cuts Squeeze Market

(Bloomberg) — Prices of lithium in China are close to a record high as a power crisis in the nation’s major hub for the vital electric-vehicle battery ingredient threatens an already-tight market.

Sichuan, home to more than a fifth of China’s lithium production, extended industrial power cuts this week amid the most intense heat wave in more than a half century. The supply disruptions in the province are set to add fuel to the metal’s stunning rally in the past year. Lithium carbonate prices Monday reaching the highest level since April at 484,500 yuan ($70,610) a ton.