Sumitomo Metal bets on Canadian battery materials firm Nano One

Utility firm said it had disconnected large-scale batteries made by thr Chinese company over security concerns.

US subsidies will support the growth of the top 3 lithium producer if the Livent and Allkem merger creating the new company goes ahead.

Lithium prices overshot last year driven by China but this year fresh supply, including from Africa, has led to a collapse in prices.

Rules for battery components should apply from 2024, while critical minerals will be covered from 2025.

Tianqi Lithium and Ganfeng Lithium closed up 6.5% and 7%, respectively, in Hong Kong on Wednesday.

The company faces charges for allegedly bribing officials in Angola and has also revealed a US probe into "improper payments" in Brazil.

The proposed mine, if built, would become one of North America's largest sources of lithium for electric vehicle batteries.

The funds will be used to support a mini-pilot to confirm certain process design criteria and improvements to the NICO project metallurgical processes in Canada's Northwest Territories. .

The revelation is the latest twist in a case that has shocked the commodity trading world.