Latest news with #GanfengLithiumGroupCo.
Yahoo
5 days ago
- Business
- Yahoo
Lithium Miners Retrace Share Gains With Chinese Output in Focus
(Bloomberg) -- Lithium producers' shares fell — following sharp gains on Monday that were driven by the closure of a major mine closure — as the market weighed the outlook for Chinese output of the battery metal. Stocks of miners declined in Hong Kong and Australia. Tianqi Lithium Corp. was about 8% lower as of 12:23 p.m. in the city after jumping 18% in the previous session, and Ganfeng Lithium Group Co. fell 5%, retracing about a quarter of its spike. In Australia, PLS Ltd. and Liontown Resources Ltd. also dropped. Sunseeking Germans Face Swiss Backlash Over Alpine Holiday Congestion New York Warns of $34 Billion Budget Hole, Biggest Since 2009 Crisis To Head Off Severe Storm Surges, Nova Scotia Invests in 'Living Shorelines' Chicago Schools' Bond Penalty Widens as $734 Million Gap Looms A New Stage for the Theater That Gave America Shakespeare in the Park The lithium market was rocked after Contemporary Amperex Technology Co. Ltd. confirmed the suspension of its Jianxiawo mine in the hub of Yichun, a move that may help to ease oversupply. The project accounts for about 6% of global lithium output, according to Bank of America Corp. There's speculation other mines in the area could also be suspended as Beijing tackles a glut as part of its anti-involution drive to curb excessive competition and overcapacity. Lithium futures on the Guangzhou Futures Exchange extended gains, although they rose less than daily-limit jump of about 8% seen on Monday. Still, lithium-carbonate prices may lack the impetus for a sustained rise, Shanghai Securities News reported. The problem of excess capacity has not fundamentally improved, and CATL's project may restart, it said, citing analysts. In Yichun, the local authorities have requested that companies facing similar regulatory scrutiny submit updated reports on their mineral reserves by Sept. 30, without yet mandating any more production suspensions. The Jianxiawo case established a 'strict tone' for regulatory approvals and enforcement, potentially broadening the extent of production halts and exacerbating supply shortages, Yongan Futures Co. said in a note. 'With a decisive outcome expected by Sept. 30, speculative trading activities might repeatedly emerge,' the analysts said. They also highlighted divergent views on time lines for mining license approvals or renewals. Why It's Actually a Good Time to Buy a House, According to a Zillow Economist Bessent on Tariffs, Deficits and Embracing Trump's Economic Plan The Social Media Trend Machine Is Spitting Out Weirder and Weirder Results Klarna Cashed In on 'Buy Now, Pay Later.' Now It Wants to Be a Bank The Game Starts at 8. The Robbery Starts at 8:01 ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
&w=3840&q=100)
First Post
11-08-2025
- Business
- First Post
China's EV crackdown lifts lithium prices after it fell 90% since hitting record high in 2022
Tianqi Lithium Corp. rose as much as 19 per cent in Hong Kong trading, while Ganfeng Lithium Group Co. jumped 21 per cent. In Australia, lithium producers also rallied read more Lithium prices and mining shares soared on Monday (August 11) after battery maker Contemporary Amperex Technology Co. Ltd. (CATL) suspended operations at a key mine in China, raising speculation that Beijing could move to curb other projects as part of efforts to address overcapacity. Tianqi Lithium Corp. rose as much as 19 per cent in Hong Kong trading, while Ganfeng Lithium Group Co. jumped 21 per cent. In Australia, lithium producers also rallied. Prices of the battery metal on the Guangzhou Futures Exchange climbed by the daily limit after CATL confirmed the closure of its mine in Jiangxi province. STORY CONTINUES BELOW THIS AD The mine, in Yichun, known as China's 'lithium capital', accounts for about six per cent of global output, according to Bank of America, with other mines in the area contributing another five per cent. CATL's mining licence expired on 9 August, and the company said the site would remain shut for at least three months while it seeks to renew the permit, Bloomberg reported. Impact on CATL and wider supply chain The company said the closure would have little effect on its battery production. CATL shares rose as much as 2.8 per cent before trimming gains. Analysts said the bigger question was whether the government would extend restrictions to other operators in the region, potentially tightening global supply. The suspension comes amid Beijing's 'anti-involution' campaign, aimed at reining in industries suffering from overcapacity. Citi analysts said shutting down mines in Yichun could allow China to re-price lithium strategically and ensure more compliant mining practices. Australian producers see gains The most-active lithium carbonate futures on the Guangzhou exchange rose 8 per cent to 81,000 yuan (£8,600) a tonne for November delivery, up from 75,000 yuan on Friday. Australian miners also saw sharp gains. PLS Ltd., formerly Pilbara Minerals, jumped 19 per cent in Sydney, Liontown Resources climbed 25 per cent, and Mineral Resources added 14 per cent. Local authorities in Yichun have asked eight miners to submit reserves reports by the end of September after an audit found regulatory non-compliance. Analysts said further restrictions after that date could push lithium prices even higher.
