BY TYLER DURDEN
MONDAY, OCT 12, 2026 – 08:20 PM
Lithium futures in China plunged on Monday after a Bloomberg report said the European Union will cap imports of Chinese hybrid vehicles at 350,000 per year, with the "safeguard measure" set to take effect in the coming weeks.
Under a four-year safeguard measure that could take effect Dec. 1, the bloc will limit Chinese hybrid imports to 350,000 vehicles in the first year, according to the report. The quota would increase by 6% annually from the second year, while the broader safeguard would cover other suppliers to comply with World Trade Organization rules.
In the note titled "EU Caps Chinese Hybrids At 350,000 As Deutsche Maps Every Trade Weapon Left In Europe’s Arsenal," we outlined that EU imports of Chinese hybrids would be roughly 45% below this year’s run rate of 650,000 vehicles.
The immediate market response to this new development was a 10% drop in the most-active lithium contract on the Guangzhou Futures Exchange, which closed at 104,740 yuan ($15,649) a ton.
Source