The world's second largest lithium producer: market oversupply lithium prices will continue to decline this year. Chile's mining and chemical industry (SQM), the world's second largest lithium producer, has warned that as the oversupply of lithium continues to affect the supply chain of electric vehicle batteries, lithium prices will further decline this year. In the long run, the market is still optimistic about the future prospects of lithium, and even traditional energy giants want to take a share.