Lithium-processing companies in the eastern Chinese city of Yichun suspended production as authorities investigate irregularities in mining of the metal, a key component in electric-vehicle batteries.
(Bloomberg) —
Lithium-processing companies in the eastern Chinese city of Yichun suspended production as authorities investigate irregularities in mining of the metal, a key component in electric-vehicle batteries.
Central government departments, including the Ministry of Natural Resources, sent work groups in the past week to the city, Yicai reported Sunday, citing unnamed local government staff. They will mainly look into violations at lithium mines and seek to guide the “healthy development” of the industry, according to the report.
The local government will target violations including mining without permits or with expired licenses, Yicai said.
According to Goldman Sachs Group Inc., the Chinese car industry’s demand for lithium has fallen by more than half in recent months, a dramatic reversal that will drive a further slump in prices. Prices in China have dropped more than 30% from last year’s peak.
–With assistance from Annie Lee and Alfred Cang.
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