LONDON, Dec 10 (Reuters) – Many lithium mines, led by Chinese operators, are maintaining production of the raw material needed for electric vehicle (EV) batteries, in defiance of prices weak enough to trigger mass output cuts – providing a boon for battery makers.
The continued production raises the prospect of years of oversupply and of weak prices. Some battery makers own mines or have injected cash into operations to keep them operational, company reports show.
Mines were also maintaining production to retain market share and good relations with governments and because closures and restarts can lead to technical issues, according to interviews with miners, consultants and analysts. So far, around a dozen lithium producers have temporarily shut loss-making mines, trimmed output or delayed expansions.
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