More than half of deals struck between western carmakers and miners during a rush to secure supplies of battery metals have been delayed, amended or cancelled after the price of materials such as lithium slumped.
General Motors, Tesla and Stellantis were among automakers that signed long-term deals for metals including lithium and nickel from 2020, as they sought to avoid potential shortages of key raw materials when the race to roll out electric vehicles heated up.
But prices have fallen sharply from their peaks, making it difficult for miners to finance new projects. That is threatening efforts to set up alternatives to China-dominated supply chains for metals needed for industries from EVs to defence. Slow permitting processes for new mines has also pushed back timelines for the delivery of metals.