Lithium miners in China have resumed operations after a government investigation into the industry found no evidence of price fixing or other illegal activities. The investigation, which was launched in August, was prompted by complaints from some of China’s biggest lithium producers that the industry was being manipulated by a few large players.
The Chinese government said it had found no evidence of illegal activity, and that the industry was operating normally. “The investigation concluded that the lithium industry in China is operating in accordance with the law,” the Ministry of Industry and Information Technology said in a statement.
The investigation looked into allegations that some of China’s biggest lithium producers had been manipulating prices, as well as claims that some companies had been using unfair trading practices. The government said it had taken action against some companies for violating laws and regulations, but did not provide details.
The investigation also found that the industry was facing a “structural shortage” of lithium, which is used in batteries for electric vehicles, mobile phones and other electronic devices. The government said it would take steps to boost production of lithium and encourage more investment in the sector.
The investigation was welcomed by the industry, which said it was a sign that the government was serious about tackling the issue of oversupply. “This is a positive step in the right direction,” said Li Zhen, chairman of the China Lithium Industry Association.
“The government’s investigation has helped to clear the air and should help to restore confidence in the industry.” The investigation was also welcomed by the industry’s customers, who said it would help to ensure a stable supply of lithium.
“We are pleased that the government has taken action to ensure the stability of the lithium supply chain,” said Wang Hui, a spokesman for electric vehicle maker BYD. The investigation comes as demand for lithium is soaring due to the growing popularity of electric vehicles.
China is the world’s largest producer of lithium, accounting for more than half of global production. The country has been ramping up production in recent years to meet the growing demand, but the industry has been hit by oversupply and falling prices.
The investigation is expected to help stabilize prices and ensure a more balanced supply of lithium in the market. The government has also announced plans to set up a lithium trading platform to help match supply and demand.
The platform, which is expected to be launched later this year, will allow companies to buy and sell lithium in bulk, helping to ensure more efficient pricing and more stable supply. The government’s move is seen as a sign that it is serious about tackling the issue of oversupply and ensuring a more balanced supply of lithium in the market.
It is also seen as a sign that the government is willing to take action to ensure the sustainability of the industry and protect its customers. The investigation and the launch of the trading platform are expected to help restore confidence in the industry and ensure a more stable supply of lithium in the future.
