Will China do to lithium what it has done to coal, iron ore, copper, oil and other OTH resources

When coal, iron ore, copper, oil and other resources have reached their all time high prices and seemed to not look like evening out, China has put the brakes on by restricting production, releasing reserves, minimising margins by manufacturers or some other centralised action.

Now with lithium hitting multiples of past highs with no sight of slowing down (e.g. PLS selling 8000t of SC5.5. spodumene (low grade) for an incredible record of US$2240/t), do you think China will do the same? One thing to consider is that, unlike copper, oil, coal and other assets, it does not have 6 months of lithium supply to release from reserves to force prices down.

It could limit production and/or margins which would have a similar effect.

This all affects timing for exit/entry/re-entry into lithium extraction, processing and production markets.

What do you think?

 

If it happens I will become manically depressed, and will not be able to afford my tablets.

 

If they did then they will have to pull back on the development of their EV industry - one which they are actively trying to dominate. Li is in long term under supply and mega battery plant openings are occurring in many other parts of the world - not just China - so they don't have a lot of leverage although they could do something in the short term.

 

Coal price doing just fine actually.

As an example:
WHC is getting close to A$200 per tonne of gross margin
Annual production ~21Mt.
Market cap $3.252B.
Unlikely to be any short or medium term supply response as the risks to invest and build mines are too great and the approval process is almost impossible.
Think about it.

 

No China won’t and can’t because lithium is the new water. It is necessarily for all things technology and mobile.