Price of Lithium Imported to China Up 42 Percent in Six Months

The price of 99 percent-pure lithium being imported into China is up 42 percent over the past six months, according to an article from the Epoch Times. Overall, demand from China for lithium—and from electric vehicle maker Tesla (NASDAQ:TSLA) in the US—is pushing prices higher.
As quoted in the publication:

The reason for increase in lithium prices is twofold.
In the short term, the recent spike in lithium spot price is largely due to a supply squeeze of lithium ore exported to China. China currently imports much of its lithium extracted from spodumene—a gray translucent mineral with high lithium content—mined in Australia. A joint venture formed by U.S. miner Albermarle and Its Chinese partner Tianqi plans to divert more spodumene to battery-grade lithium carbonate and hydroxide production, according to an Economist report. That squeezes lithium ore supply and puts upward pressure on the spot market in China.
Long term demand is also driving a recent surge in lithium prices, especially from electric vehicle companies. Elon Musk’s Tesla Motors prepares to start production at its battery “Gigafactory” in Nevada later this year. Tesla’s “Gigafactory” looks to supply lithium ion batteries for 500,000 cars a year within five years. J.B. Straubel, Tesla’s chief technical officer, has been vocal about securing supplies of not just lithium but other battery materials as well.

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