The Near-500% Rally in Lithium Is Showing Cracks in China

  • China lithium carbonate slid Monday: Asian Metal’s index
  • EV makers Tesla, VW suspend production in Shanghai’s lockdown
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Lithium is showing signs of losing momentum -- at least in China -- after a powerful rally that carried prices to what Elon Musk called “insane levels”.

Chinese lithium carbonate, which has gained almost 500% in the past year, slipped slightly on Monday after steadying in the past week, according to Asian Metal Inc. The nation’s worsening coronavirus outbreak has upended the electric-vehicle supply chain, and buyers’ resistance to high prices is clouding the demand outlook.