Lithium Prices Slump 14% as EU-China Trade Deal Curbs Hybrid Exports

Key Facts

1China's most actively traded lithium futures contracts have dropped by 14% since the start of the week.

2The European Union and China reached a deal that will cut Chinese hybrid car exports to the bloc.

China's most actively traded lithium futures contracts have dropped by 14% since the start of the week. The decline follows a trade deal reached between the European Union and China that will cut Chinese hybrid car exports to the bloc, according to Bloomberg.

Protectionist measures by the EU against Chinese automotive exports have outweighed previous demand optimism fueled by high oil prices and the Middle East conflict. The agreement is expected to significantly reduce the demand for battery materials by capping hybrid vehicle imports, reversing earlier market sentiment that favored lithium producers.