The global health crisis has deepened financial troubles at one of China’s biggest producers of lithium used in electric vehicle batteries.
The pandemic is set to batter this year’s demand for the material that’s vital in powering new energy transport. Prices are at four-year lows, and a deepening crisis in the global auto market could create more corporate turbulence even as the long-term outlook remains bright.
China’s two biggest suppliers, Tianqi Lithium and Ganfeng Lithium, have both issued profit warnings in the past day, with Tianqi expecting a loss on low prices among other factors. The economic turmoil is weighing particularly heavily on Tianqi, which took on billions of dollars of debt to fund an investment in Chile in 2018.