Chinese Lithium Plunge Has Created Huge Discount to US Prices

Lithium prices are plunging around the world, but the slump is particularly glaring in China, where the key battery metal is trading at a big discount versus the US.

After a buying frenzy sent global prices soaring though last year, they’ve since plunged as electric vehicle demand disappoints and supplies are expected to remain ample. Yet despite the broad rout, futures in the crucial Chinese market are about a third cheaper.

The spread offers traders an opportunity to make money, but also highlights just how bearish the outlook is in the top EV producer. The weakness has been especially pronounced ...