Companies along China's electric vehicle (EV) supply chain, from miners to battery-makers and car companies, have been riding high on an EV buying spree. And the price of lithium, a key raw material in most electric car batteries, has soared in tandem, drawing billions in capital from a diverse group of investors. But the wave of demand downstream is breaking, leading analysts and industry insiders to predict a supply glut and plunging prices of the metal this year.
The spot price of lithium carbonate spent almost two years rocketing up, reaching a record high of around 600,000 yuan ($85,530) per ton in November -- close to 12 times the price at the start of 2021 -- as demand outpaced supply, creating unprecedented profits for miners.
