New subsidies on Chinese EVs could hit small lithium miners

CHANGING batteries is an everyday matter. Changing the amount of power in a battery is something quite different, but it’s what China is proposing to do and that could affect some of the hottest stocks on the stock market - lithium miners.

New subsidies on Chinese EVs could hit small lithium miners New subsidies on Chinese EVs could hit small lithium miners New subsidies on Chinese EVs could hit small lithium miners New subsidies on Chinese EVs could hit small lithium miners New subsidies on Chinese EVs could hit small lithium miners

Tesla's new factory in Shanghai. Image: Tesla

The plan is part of a move by China to streamline its manufacturing sector by encouraging manufacturers of bigger and more powerful batteries, and discouraging the myriad of small battery makers.

While the immediate impact of a subsidy variation will be felt by Chinese battery makers, the change is expected to flow along the supply pipeline as big battery makers stitch up supplies of battery metals from the biggest and most reliable suppliers with a focus on those able to meet strict quality guidelines.

Biggest winners from the Chinese change could be major lithium suppliers such as US-based Albemarle, Chile's SQM, and China's own Tianqi, but there is the potential for disruption throughout the battery-metal supply pipeline.

Macquarie used the report of the Ch...