China controls the bulk of lithium refining, and that will pose a challenge to battery companies and car makers hoping to qualify for lucrative new tax credits.
State of play: Most of the lithium that’s used in electric vehicle batteries and similar electronics flows through Chinese-controlled processing plants.
What’s happening: Batteries that incorporate such refined materials are prohibited from qualifying for lucrative new tax credits included in 2022’s Inflation Reduction Act.
China Policy Research 