China fuels price ‘distortions’ hitting US mineral projects — report

By Hannah Northey | 01/31/2025 04:17 PM EST

The U.S. Geological Survey found dominant producers like China are triggering a roller coaster in pricing across global markets.

People wave flags of China.

People wave flags of China on Oct. 1, 2022, in Hong Kong. Keith Tsuji/AFP via Getty Images

China is continuing to have a whipsaw effect on global critical mineral prices — from lithium to cobalt and nickel — and projects in the U.S., according to a new federal study.

The U.S. Geological Survey in its annual mineral commodity summaries report found that prices for battery materials have fallen sharply due to oversupply from dominant producers, including China.

Metals used to make lithium-ion batteries, including cobalt, lithium and nickel, dropped in value by up to 60 percent compared with production values in 2023. In turn, USGS noted, the cratering of prices snarled domestic projects, causing some to halt mining and processing.

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China, notably, dominates the mining of cobalt in Congo and nickel mining in Indonesia.

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