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Giustra-Backed Lithium X Plunges on Doubts About Chinese Buyer

  • China’s NextView failed to come up with cash on separate deal
  • Skepticism about lithium’s outlook amid talk of possible glut
Stockpiles of lithium ore
Photographer: Carla Gottgens/Bloomberg

A lithium explorer backed by Canadian mining magnate Frank Giustra dropped in Toronto trading amid speculation that its prospective buyer, a Chinese investment company, may fail to cough up the cash.

Vancouver-based Lithium X Energy Corp. fell the most in nearly two years Wednesday, the latest casualty in a sector that’s been pummeled this week on forecasts that a supply glut may loom for the metal used in electric-vehicle batteries.