Kent Masters, CEO of Arbor, the world's largest lithium producer, recently said that the West cannot economically stop relying on key Chinese minerals. Due to low lithium prices and high production costs, shifting to a Western supply chain “won't pay off”. Arbor has suspended expansion plans after losing $1.1 billion due to falling lithium prices. China accounts for 65% of global lithium refining capacity and is expected to account for more than half of global lithium supply in 2040. Although the U.S. Inflation Reduction Act encourages non-Chinese material sourcing and domestic production, Arbor believes the law has not accelerated the supply chain. Analysts do not expect lithium prices to recover until 2027.