CATL likely to offer less than 10pc discount for US$5 billion Hong Kong listing, sources say
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South China Morning Post
34 minutes ago
- South China Morning Post
US lithium stocks surge as Chinese mine closes after permit expires
Shares of North American lithium producers soared as investors bet that the suspension of a major Chinese mine would ease a supply glut and be likely to lead to a rebound in prices. CATL, the world's biggest battery producer, confirmed the closure of its Jianxiawo mine on Monday, saying it is seeking to renew its expired permit. The fate of the mine, the largest in China's lithium hub of Yichun, had been under close scrutiny for weeks amid speculation that authorities would not extend its licence. The mine accounts for about 6 per cent of global output, according to Bank of America. 'In the short term, abrupt supply cuts would trigger further price volatility, disrupt the domestic battery industry and benefit foreign lithium miners,' said Martin Jackson, head of battery raw materials at consultancy CRU Group. Lithium brine evaporation ponds at Albemarle's lithium mine in Silver Peak, Nevada. Photo: Las Vegas Review-Journal / TNS Shares of US producer Albemarle rose nearly 16 per cent on Monday in New York in its biggest intraday increase in four months.
South China Morning Post
9 hours ago
- South China Morning Post
CATL leaves lithium mine idle in Yichun amid looming glut of China's EV battery producers
Contemporary Amperex Technology's suspension of production at a major lithium mine in mainland China is a clear sign of Beijing's aggressive stance towards curbing overcapacity in the electric vehicle (EV) battery sector, according to analysts. The world's largest producer of EV batteries, known as CATL, said on Sunday evening that the licence for the mine in Yichun, in China's central Jiangxi province, had expired on Saturday. It added that an application for restarting operations had been submitted and said the temporary production halt would have only a limited impact on the company's businesses. 'The production halt could be a result of Beijing's efforts to curb excess capacity in the EV battery industry,' said Ding Haifeng, a consultant at Shanghai-based financial advisory firm Integrity. 'But it remains to be seen whether the government will take further steps to limit the output of lithium.' A view of CATL's lithium mine in Yichun, Jiangxi province. Photo: Reuters Fluctuating prices of lithium, a key battery component, have a huge impact on the cost of electric cars. Lithium carbonate contracts on the Guangzhou Futures Exchange jumped by the daily limit of 8 per cent to 81,000 yuan (US$11,279) a tonne on Monday. Citigroup analysts said in a report on Monday that a 10,000 yuan per tonne increase in the price of lithium could cause CATL's profit margin, which stood at 22.4 per cent at the end of June, to drop by 4 percentage points.
South China Morning Post
11 hours ago
- South China Morning Post
CATL lithium mine halt signals Beijing's EV battery overcapacity concerns
Contemporary Amperex Technology's suspension of production at a major lithium mine in mainland China is a clear sign of Beijing's aggressive stance towards curbing overcapacity in the electric vehicle (EV) battery sector, according to analysts. The world's largest producer of EV batteries, known as CATL, said on Sunday evening that the licence for the mine in Yichun, in China's central Jiangxi province, had expired on Saturday. It added that an application for restarting operations had been submitted and said the temporary production halt would have only a limited impact on the company's businesses. 'The production halt could be a result of Beijing's efforts to curb excess capacity in the EV battery industry,' said Ding Haifeng, a consultant at Shanghai-based financial advisory firm Integrity. 'But it remains to be seen whether the government will take further steps to limit the output of lithium.' A view of CATL's lithium mine in Yichun, Jiangxi province. Photo: Reuters Fluctuating prices of lithium, a key battery component, have a huge impact on the cost of electric cars. Lithium carbonate contracts on the Guangzhou Futures Exchange jumped by the daily limit of 8 per cent to 81,000 yuan (US$11,279) a tonne on Monday. Citigroup analysts said in a report on Monday that a 10,000 yuan per tonne increase in the price of lithium could cause CATL's profit margin, which stood at 22.4 per cent at the end of June, to drop by 4 percentage points.
