Lithium Prices and Stocks Soar as Chinese Firm Suspends Major Mine's Operations
Chinese battery manufacturer Contemporary Amperex Technology Co., or CATL, reportedly suspended operations at one of the world's largest lithium mines.
The CATL mine in the region of Yinchun, in China's Jiangxi province, provides an estimated 6% of the world's supply of lithium.
The news sent lithium prices higher, and lifted shares of producers, including Albemarle.Shares of Albemarle (ALB) and other lithium producers took off on reports big Chinese battery maker Contemporary Amperex Technology Co., or CATL, said it was suspending production at one of the largest mines in the world.
The news sent lithium futures soaring. Albemarle shares were up close to 8% in recent trading. Sociedad Quimica y Minera, or SQM (SQM), saw its shares jump 7%.
CATL's license for its Jianxiawo lithium mine in the region of Yinchun, in China's Jiangxi province, expired Aug. 9, and the company said it is applying to renew it as soon as possible, according to a Reuters report.
The CATL mine accounts for an estimated 6% of all global lithium output, Bloomberg reported, citing Bank of America research. It noted that the license expiration has raised fears the Beijing government could suspend other projects. The latest mining halt comes after another Chinese lithium miner suspended production in July.
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