Nickel and lithium prices plunge as Chinese EV demand loses steam

Production facilities shutting down due to worsening profitability

20240205N Chile lithium

The output of lithium projects in South America, such as this one in Chile, have contributed to the glut in the material. © Reuters

SHINICHI ARAKAWA, Nikkei staff writer

TOKYO -- The prices of lithium and nickel, key materials used in electric vehicle batteries, have nose-dived due to a sharp slowdown in growing demand in China.

Three-month nickel futures closed at $16,235 per tonne on the London Metal Exchange Friday, down about 50% from the end of 2022. The metal fell to a 32-month low in November and has been stuck at that level since.

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