However, steps taken by automakers are giving momentum to the EV uptake in China. To grab a bigger market share, Tesla has declared a price war on its local rivals,
with electric vehicles thus becoming cheaper and their sales soaring almost 56% YoY in February
– more than enough to make up for January’s decline. While larger players are able to stand up to this challenge, the smaller ones aren’t and have to give way to the ‘big boys.’
Though EV demand has been on the rise, encouraged by discounts, this hasn’t affected lithium, with the outlook for it remaining hazy. End users now benefit from lower prices set by car makers, but things could change tomorrow if lithium refiners continue to make losses. Another factor to consider is the latest news from Chile’s President Gabriel Boric, who has unveiled plans to nationalize the country’s lithium industry, a major move that could completely reshape the global market landscape.