China's lithium optimism continues

AS the world’s largest lithium consumer, China is an important part of the global lithium picture. This year has also seen major lithium producers in the country sign noteworthy supply contracts with battery and electric vehicle manufacturers.

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Lithium prices are dropping as new supply outpaces demand growth

In the past week alone, China's Ganfeng Lithium signed a major deal with BMW to supply lithium for battery production over a five-year period, which could be extended by three more.

It also revealed recently it had signed a three-year deal with Tesla, which would see it supplying the electric vehicle manufacturer with 20% of its lithium requirement.

The Energy Minerals Investor Hub spoke to Benchmark Mineral Intelligence's Albert Li about the drop in lithium prices, the role of China and the uncertainty of government subsidies.

Energy Minerals Investor Hub: What has caused the recent price drop in lithium?

Albert Li: The price continues to drop this year mainly because demand growth is being outpaced by new supply...