During a visit to Portugal, a senior U.S. official claimed that China is flooding the market in lithium as a “predatory” tactic to drive down global prices and beat back competition. If prices are low, the theory goes, it’s hard to attract investors and make mine development in the West economically attractive.
Reuters reported Jose Fernandez, undersecretary for economic growth, energy and the environment at the U.S. Department of State said at a briefing earlier this month that China was looking at the U.S. Inflation Reduction Act, which provides government funding for the development of critical minerals and domestic manufacturing, and responding to the competition it may create.
“They engage in predatory pricing… (they) lower the price until competition disappears. That is what is happening,” Fernandez said. It’s not the first time the communist country has been accused of such practices.
David Hammond, a mineral economist with decades of experience as a mining consultant, told Just the News that China does flood the market, but he said the reasons have less to do with short-term impacts on competition and more with long-term control of electric vehicle manufacturing. […]
— Read More: justthenews.com
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