(NewsNation) — Global lithium prices have cratered, due in large part to China’s slowing demand for electric vehicles, according to a new report.

The price of the commodity has dropped 80% from last year, the Financial Times reported, citing information from Benchmark Mineral Intelligence. It’s now at its lowest point since 2020.

Lithium is the key component used to make batteries in electric vehicles, and the drop in prices could mean a corresponding decline in EV prices, Semafor reported.

Raw material providers had raced to meet demand over the past two years during EV growth explosion, but companies are now scaling back because of oversupply, Bloomberg reported.

Core Lithium Ltd., based in Australia, said it would cut jobs and trim exploration budgets, while Pilbara Minerals Ltd. said it was unlikely to pay dividends for the half-year ended Dec. 31. Albemarle Corp., the top lithium miner, also said it would reduce project spending and costs.

The decline in demand doesn’t appear to be exclusive to China. One analyst told MarketWatch that while global EV sales are still booming, the growth has gone from “tremendous” to merely “excellent.”

U.S. automakers GM and Ford have scaled back plans to boost EV production in response to the slowing demand.

There’s trouble in Argentina, too. Newly elected President Javier Milei wants to boost exports of the country’s vast lithium reserves, but political rivals have vowed to stop him, La Nacion reported.