Lithium miners making gains before second day of US-China trade talks
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The news: Lithium miners are among the biggest gainers on the ASX 200 ahead of a second day of talks between US and China on tariffs and export controls, particularly around rare earth metals.
The numbers: At 12:18pm AEST, Mineral Resources was up 6.6% to $25.28, Pilbara Minerals was 6.4% higher at $1.37, Liontown Resources had risen 6.7% to $0.67 and IGO was up 3% to $4.32.
Rare earth producers Lynas Rare Earths and Iluka Resources were also higher, up 2.19% to $9.35 and by 2.12% to $3.85 respectively.
The context: Almost all production of rare earth metals and related magnets, which are key inputs to electric vehicles and other supply chains with advanced electrical components, occurs within China.
Although the US and China agreed to suspend tariff and non-tariff barriers in May, including Chinese export restrictions on rare earth metals, both sides have accused each other of violations particularly as electric vehicle supply chains started feeling the squeeze.
Trade talks between US and Chinese officials began in London on Monday and are expected to continue on Tuesday.
Lithium is not a rare earth metal but processing of the key input to electric vehicle batteries is dominated by China.
