"Jose Fernandez, under secretary for economic growth, energy and the environment at the U.S. Department of State, told a briefing late on Monday that China was producing much more lithium "than the world needs today, by far".

"They engage in predatory pricing... (they) lower the price until competition disappears. That is what is happening."

No kidding, eh?

Something LAC and LAAC investors have known for some time now, for way too long.

China is oversupplying lithium to eliminate rivals, US official says (msn.com)

A better article on the same subject:  US Says China is Oversupplying Lithium to Kill Off Rival Firms (asiafinancial.com)

What will be the political response to Chinese induced price springs for lithium and other critical minerals here in the U.S.?  Well, "price floors" have been proposed as a possible solution, a solution not without its own set of problems.

"Whether DOE ends up announcing a price floor plan or not, the US must find a way to break its domestic mineral paradox. Price swings imperil domestic mining operations, and without an alternative to unstable foreign supply chains, foreign producers will be able to determine access to necessary materials for the US and its allies."

The paragraph quoted above comes from the article linked below:

Guest column: To solve its domestic mineral paradox, America may need price floors - MINING.COM

I have said before that the current decline, more like a market dive, in lithium prices leads to a survival of the fittest scenario for potential and actual lithium mining companies here in the West, not just the United States, but certainly the wannabees all over the U.S. are adversely affected by it.

Lithium producers cut output, scaleback expansion as prices plunge - The Hindu BusinessLine

Tumbling lithium prices push Albemarle to fresh round of cost cuts | Reuters

Lithium Miners News For The Month Of August 2024 | Seeking Alpha

"Albemarle’s Chairman and CEO Jerry Masters noted that new greenfield projects, particularly in the West, are not economically feasible at current lithium lithium prices."

Lithium Producers Adapt to Price Plummet, Cut Costs and Delay Investments (carboncredits.com)

https://www.bloomberg.com/news/articles/2024-08-06/arcadium-lithium-pauses-expansion-plans-on-prices-supply-glut#:~:text=Arcadium%20Lithium%20Plc%20will%20suspend%20or%20delay%20two%20of%20its

LAC and LAAC investors are all looking forward to the day when lithium prices come back up, "up" being somewhat difficult to define, but it appears we are all pawns in a game being played by the Chinese as far as the future of lithium prices.

Okiedo