Lithium Stocks Surge as Chinese Mine Closes After Permit Expires
CATL, the world's biggest battery producer, confirmed the closure of its Jianxiawo mine on Monday, saying it's 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 wouldn't extend its license. The mine accounts for about 6% of global output, according to Bank of America Corp.
'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.
Shares of US producer Albemarle rose nearly 16% Monday in New York in its biggest intraday increase in four months. Piedmont Lithium Inc. rose as much as 18%, while Lithium Americas Corp. surged as much as 14%. Chilean producer SQM also jumped as much as 12% in US trading.
Lithium producers have struggled with a global supply glut exacerbated by demand headwinds for electric vehicles, including President Donald Trump's rollback of incentives for the industry in the US. The suspension of Jianxiawo mine could help narrow the massive supply surplus in the lithium market, potentially bolstering slumping prices of the battery metal.
The suspension of CATL's mine will support higher lithium prices in the near term and is bullish for producers such as Albemarle Corp. and SQM, Bloomberg Intelligence analyst Sean Gilmartin wrote in a note Monday.
Reduced Chinese output has led to more upside for lithium prices, signaling the market has found a bottom, with more constructive fundamentals likely to emerge in the next two years as supply ramp-ups start to fade, Gilmartin added. Demand still is expected to grow by 15% over the period, he said.
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For example, India's pharmaceutical industry, often called the 'pharmacy of the world", supplies 20% of global generic drugs by volume, including critical medications for the U.S. and EU. This market leverage gives India the confidence to negotiate from a position of strength. Moreover, India's focus on emerging sectors like renewable energy and semiconductors aligns with global trends. The National Green Hydrogen Mission, launched in 2023 with a Rs 19,744 crore outlay, aims to make India a global leader in green hydrogen production by 2030, attracting $8 billion in investments by 2025. Similarly, the India Semiconductor Mission has secured commitments from companies like TSMC and Micron, with $10 billion in planned investments to establish India as a chip manufacturing hub. On August 12, 2025, the Union Cabinet approved four new semiconductor manufacturing projects under the India Semiconductor Mission, with a total investment of approximately Rs 4,594-4,600 crore, spanning across two units in Odisha and one each in Andhra Pradesh and Punjab. India is also set to produce it's first indigenous semiconductor chip soon. top videos View all In a world where economic leverage is increasingly weaponized, India's tariff diplomacy under Prime Minister Narendra Modi offers a blueprint for other nations: strategic autonomy is not about isolation but about building resilience through diversification. Pradeep Bhandari is BJP's National Spokesperson. Views expressed in the above piece are personal and solely those of the author. They do not necessarily reflect News18's views. tags : Narendra Modi view comments Location : New Delhi, India, India First Published: August 13, 2025, 12:56 IST News opinion Opinion | India's Tariff Diplomacy: Strategic Autonomy In Fractured Global Order Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
