International news within the industry of mining and metal, Sep, 20 2018
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Are we going to see soon a global Lithium cartel ?

A cartel is a group of apparently independent producers whose goal is to increase their collective profits by means of (mostly secret) price fixing, limiting supply, or other restrictive practices. Photo: Creative Commons, Geralt
A cartel is a group of apparently independent producers whose goal is to increase their collective profits by means of (mostly secret) price fixing, limiting supply, or other restrictive practices. Photo: Creative Commons, Geralt
Published by
Markku Björkman - 23 May 2018

Voices of warning are raising on Lithium market. - The same thing that happened on the oil market in the 1970s on the oil market and was happening on the iron ore market about 10 years ago, when BHP Billiton and Rio Tinto planned to bump their bags can soon become reality on the lithium market. Without any protests being heard. That warning is issued by Bloomberg Opinion, which says there is a reason to be worried that the lithium market will soon end up in the hands of Chinese interest. As is already the case for the market for many rare piles of earth.

Bloomberg Opinion finds it remarkable that no votes have been raised against the oligopoly in the form of the lithium market, with Tianqi Lithium Corporation's acquisition of 24 percent of the Chilean SQM shares, a $ 4.1 billion deal. In general, the lithium market seems to be governed by several independent companies, but there are many links between the dominants and at least two of the CEOs for two of the largest companies, Ganfeng and Tianqi, at the same time in decision-making positions in China's National People's Congress.