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China’s EV Slowdown Deepens Debt Woes at Top Lithium Supplier

  • Both Tianqi Lithium and Ganfeng Lithium issue profit warnings
  • Market’s future remains bright as Beijing looks to support EVs

Lithium ore sits at a Talison Lithium Ltd. facility, a joint venture between Tianqi Lithium Corp. and Albemarle Corp.

Photographer: Carla Gottgens/Bloomberg
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The global health crisis has deepened financial troubles at one of China’s biggest producers of lithium used in electric vehicle batteries.

The pandemic is set to batter this year’s demand for the material that’s vital in powering new energy transport. Prices are at four-year lows, and a deepening crisis in the global auto market could create more corporate turbulence even as the long-term outlook remains bright.