Chinese Lithium Plunge Creates Huge Discount to U.S. Prices

(Bloomberg) — Lithium prices are plunging around the world, but the slump is particularly glaring in China, where the key battery metal is trading at a big discount versus the U.S.

After a buying frenzy sent global prices soaring though last year, they’ve since plunged as electric vehicle (EV) demand disappoints and supplies are expected to remain ample. Yet despite the broad rout, futures in the crucial Chinese market are about a third cheaper.