Latest news with #Yichun
Yahoo
9 hours ago
- Automotive
- Yahoo
CATL suspends operations at major lithium mine due to expired licence
CATL, a China-based battery manufacturer, has announced the suspension of operations at one of its lithium mines in Yichun, Jiangxi province, due to an expired licence, according to a Reuters report. The company is reportedly actively seeking to renew the licence to resume production promptly. CATL's Yichun mine is capable of producing more than 46,000 tonnes per annum of lithium carbonate equivalent, around 3% of the projected global lithium output for 2025. The stoppage at the mine marks the first publicly known suspension in the region. Following the announcement, lithium carbonate futures on the Guangzhou Futures Exchange surged by 8%, hitting the price limit. Shares of lithium miners in China and Australia also experienced significant gains, with some stocks soaring by more than 10%. Chinese lithium mining companies saw their share prices rise, with Ganfeng Lithium's shares increasing by more than 4% and Tianqi Lithium's shares jumping by around 11%. In Australia, Liontown Resources led the gains with a 25% surge, while other miners such as Pilbara Minerals, IGO, Core Lithium and Mineral Resources also saw their stocks rise significantly. The volatility of lithium prices has been ongoing since July, when China intensified its stance against overcapacity in the mining sector. This has led investors to speculate that supply side reforms could limit the output of lithium and other commodities. The lithium sector has faced challenges in terms of oversupply and slower-than-expected demand growth for electric vehicles. After reaching record highs in 2022, lithium prices have since plummeted nearly 90%, causing global producers to reconsider their investment strategies. Last September, lithium prices increased when CATL announced adjustments to production at the Yichun project. However, prices declined after the company revealed plans to restart operations in February. Additionally, China has postponed and quietly released its first rare earth mining and smelting quotas for 2025, indicating a move towards stricter regulation of this vital sector. The delay in quotas this year is partly due to a proposal to include imported ore in the quota system, which has met with opposition from companies reliant on imported materials. "CATL suspends operations at major lithium mine due to expired licence" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
South China Morning Post
a day ago
- Business
- 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.
Bloomberg
a day ago
- Business
- Bloomberg
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 likely lead to a rebound in prices. 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.
Yahoo
a day ago
- Automotive
- Yahoo
Lithium stocks soar after world's largest EV battery maker shutters mine in China
Lithium stocks soared early Monday after the world's largest EV battery maker closed its lithium mine in China, sending lithium prices soaring. The spike in lithium companies' stocks comes after Contemporary Amperex Technology (C7A0.F) announced early Monday morning that it was halting operations at one of its most important mines in China — also one of the world's largest — after its permit for the mine expired. The company said the Jianxiawo mine, the largest in China's Yichun lithium hub, will be shuttered for three months while it seeks to renew its license, according to Bloomberg. CATL is the largest EV battery manufacturer in the world, holding more than a third of the market. Shares of Albemarle (ALB) and Sociedad Química y Minera (SQM), the two largest lithium producers in the world, were up more than 11% and 9%, respectively, in early trading. Fellow major lithium miners and processors Lithium Americas (LAC) and Sigma Lithium (SGML) were up over 8% and 16%, respectively. The price of spot lithium was up nearly 4% on Monday; lithium prices have risen over 15% in the past month. Elon Musk's Tesla (TSLA) is one of CATL's biggest customers, according to a report from the Shanghai Metals Market. Tesla stock was up 2% early Monday morning. In January, the US Department of Defense added CATL to a list of companies it says are affiliated with the Chinese military. This would ban the Defense Department from signing procurement contracts with the company beginning in June 2026 CATL's move to shutter its mine will likely be seen as reflective of Beijing's increasing crackdown on "involution," which it sees as a phenomenon where increasing competitive prices for resources like lithium are self-defeating and end up slowing development instead of spurring it, according to the Financial Times. Lithium's centrality to the global market has exploded over the past few years due to the metal's key role in electric vehicles, storage capacity on power grids, and a variety of electronics, including phones and laptops. Demand for the metal could grow by as much as 40% by 2040, according to a forecast from the International Energy Agency. Lithium prices had fallen sharply over the past couple of years, hitting their lowest level since 2021 in June after dropping 20% from the start of the year, as mines around the world have continued to produce the rare-earth metal even as output has outpaced demand. Production in China alone has risen by 55% since 2023, according to data from commodities pricing agency Fastmarkets. "At this time, we see limited upside in the short term with a lack of pricing and market dynamics change, but also limited downside as we believe the market has bottomed out," UBS analysts wrote in a July research note. "This leaves investors in a 'no man's land', where trading and taking positions into equities is challenging." Jake Conley is a breaking news reporter covering US equities for Yahoo Finance. Follow him on X at @byjakeconley or email him at 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
Yahoo
a day ago
- Automotive
- Yahoo
Lithium stocks soar after world's largest EV battery maker shutters mine in China
Lithium stocks soared early Monday after the world's largest EV battery maker closed its lithium mine in China, sending lithium prices soaring. The spike in lithium companies' stocks comes after Contemporary Amperex Technology (C7A0.F) announced early Monday morning that it was halting operations at one of its most important mines in China — also one of the world's largest — after its permit for the mine expired. The company said the Jianxiawo mine, the largest in China's Yichun lithium hub, will be shuttered for three months while it seeks to renew its license, according to Bloomberg. CATL is the largest EV battery manufacturer in the world, holding more than a third of the market. Shares of Albemarle (ALB) and Sociedad Química y Minera (SQM), the two largest lithium producers in the world, were up more than 11% and 9%, respectively, in early trading. Fellow major lithium miners and processors Lithium Americas (LAC) and Sigma Lithium (SGML) were up over 8% and 16%, respectively. The price of spot lithium was up nearly 4% on Monday; lithium prices have risen over 15% in the past month. Elon Musk's Tesla (TSLA) is one of CATL's biggest customers, according to a report from the Shanghai Metals Market. Tesla stock was up 2% early Monday morning. In January, the US Department of Defense added CATL to a list of companies it says are affiliated with the Chinese military. This would ban the Defense Department from signing procurement contracts with the company beginning in June 2026 CATL's move to shutter its mine will likely be seen as reflective of Beijing's increasing crackdown on "involution," which it sees as a phenomenon where increasing competitive prices for resources like lithium are self-defeating and end up slowing development instead of spurring it, according to the Financial Times. Lithium's centrality to the global market has exploded over the past few years due to the metal's key role in electric vehicles, storage capacity on power grids, and a variety of electronics, including phones and laptops. Demand for the metal could grow by as much as 40% by 2040, according to a forecast from the International Energy Agency. Lithium prices had fallen sharply over the past couple of years, hitting their lowest level since 2021 in June after dropping 20% from the start of the year, as mines around the world have continued to produce the rare-earth metal even as output has outpaced demand. Production in China alone has risen by 55% since 2023, according to data from commodities pricing agency Fastmarkets. "At this time, we see limited upside in the short term with a lack of pricing and market dynamics change, but also limited downside as we believe the market has bottomed out," UBS analysts wrote in a July research note. "This leaves investors in a 'no man's land', where trading and taking positions into equities is challenging." Jake Conley is a breaking news reporter covering US equities for Yahoo Finance. Follow him on X at @byjakeconley or email him at 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
