Lithium at Two-Year Low Hobbles U.S. Bid to Loosen China's Grip on Market
- Small companies hope to build U.S. supply chain with new mines
- Strict environmental rules, government regulation also hurdles
Stockpiles of lithium ore
Photographer: Carla Gottgens/BloombergThis article is for subscribers only.
The lowest lithium prices in over two years are hampering a handful of miners that want to challenge China’s dominance in the market.
China controls most of the processing that makes the mineral usable in rechargeable batteries, leaving American vehicle makers vulnerable to supply disruptions if trade tensions escalate. With automakers from Tesla Inc. to General Motors Co. aiming to manufacture more electric cars at home, small companies are seeking to build the first U.S. lithium mines in decades as a step toward forming a local supply chain.