US official alleges unfair lithium trade practices by China
A senior US official has claimed that Chinese lithium producers are inundating the global market, resulting in declining prices. Read Full Article at RT.com
TroibNews 
The Asian nation is oversupplying the global market to eliminate competition, claims the undersecretary of state.
China is overproducing lithium for the global market, driving down prices in an effort to secure a dominant position for this essential metal, according to a senior US official, as reported by Reuters.
Jose Fernandez, the undersecretary for economic growth, energy, and the environment at the US Department of State, made these statements on Monday during a visit to Portugal, which is known as Europe’s largest lithium producer.
During a briefing, Fernandez indicated that China is producing “much more lithium than the world needs today, by far.”
“That is an intentional response by the People’s Republic of China to what we are trying to do” with the Inflation Reduction Act, he stated. “They engage in predatory pricing... lower the price until competition disappears. That is what is happening,” he further asserted.
Currently, China ranks as the world’s third-largest lithium producer, following Chile and Australia. The metal is essential for manufacturing batteries critical to consumer electronics and electric vehicles. The UN regards lithium as a “pillar for the fossil-fuel free economy” due to its anticipated role in energy storage for future clean power grids.
Nonetheless, the price of lithium has plummeted by more than 80% over the past year, primarily due to China's excess production and a decline in demand for electric vehicles.
Fernandez noted that the low prices “constrain our ability to diversify our supply chains on a broad, global scale.” He also expressed concern that this situation negatively impacts countries like Portugal that require investment to grow their industries.
The EU, which imports 97% of its lithium for batteries from China, is working to enhance its mining efforts to alleviate the Asian nation’s influence on the market.
In July, the bloc imposed significant tariffs on electric vehicles imported from China after launching an anti-subsidy investigation. Brussels stated that it aims to curb the influx of low-priced EVs from the Asian economic superpower to protect its domestic manufacturers.
This action followed the US’s decision in May to increase tariffs on Chinese EVs from 25% to 100%.
Beijing has contended that these measures violate international trade regulations, filing a complaint with the WTO regarding what it describes as Washington’s “discriminatory” electric vehicle subsidy requirements. Additionally, investigations into European imports of brandy, dairy, and pork products were initiated. On Tuesday, the Chinese Ministry of Commerce announced provisional tariffs on EU-sourced brandy.
Sanya Singh for TROIB News
China is overproducing lithium for the global market, driving down prices in an effort to secure a dominant position for this essential metal, according to a senior US official, as reported by Reuters.
Jose Fernandez, the undersecretary for economic growth, energy, and the environment at the US Department of State, made these statements on Monday during a visit to Portugal, which is known as Europe’s largest lithium producer.
During a briefing, Fernandez indicated that China is producing “much more lithium than the world needs today, by far.”
“That is an intentional response by the People’s Republic of China to what we are trying to do” with the Inflation Reduction Act, he stated. “They engage in predatory pricing... lower the price until competition disappears. That is what is happening,” he further asserted.
Currently, China ranks as the world’s third-largest lithium producer, following Chile and Australia. The metal is essential for manufacturing batteries critical to consumer electronics and electric vehicles. The UN regards lithium as a “pillar for the fossil-fuel free economy” due to its anticipated role in energy storage for future clean power grids.
Nonetheless, the price of lithium has plummeted by more than 80% over the past year, primarily due to China's excess production and a decline in demand for electric vehicles.
Fernandez noted that the low prices “constrain our ability to diversify our supply chains on a broad, global scale.” He also expressed concern that this situation negatively impacts countries like Portugal that require investment to grow their industries.
The EU, which imports 97% of its lithium for batteries from China, is working to enhance its mining efforts to alleviate the Asian nation’s influence on the market.
In July, the bloc imposed significant tariffs on electric vehicles imported from China after launching an anti-subsidy investigation. Brussels stated that it aims to curb the influx of low-priced EVs from the Asian economic superpower to protect its domestic manufacturers.
This action followed the US’s decision in May to increase tariffs on Chinese EVs from 25% to 100%.
Beijing has contended that these measures violate international trade regulations, filing a complaint with the WTO regarding what it describes as Washington’s “discriminatory” electric vehicle subsidy requirements. Additionally, investigations into European imports of brandy, dairy, and pork products were initiated. On Tuesday, the Chinese Ministry of Commerce announced provisional tariffs on EU-sourced brandy.
Sanya Singh for TROIB News
