Lithium stocks soar after world’s largest EV battery maker shutters mine in China
Lithium stocks rose early on Monday after closing the lithium mine in China, the world’s largest home battery manufacturer, and lithium prices rose.
The increase in the share of lithium companies has come after the contemporary amperex technology (C7a0.F) announced that it stopped operations in one of the most important mines in China, one of the largest in the world after the end of the mine’s permission on Monday morning.
The company said the Jianxiawo Mine, the largest in China’s Yichun Lithium Hub. It will be closed for three months According to Bloomberg, trying to renew his license.
Catl is the world’s largest home battery manufacturer. More than one third of the market.
Albemarle (Alb) and Sociedad Química Y Minera (SQM) shares, the world’s two largest lithium manufacturers, increased by more than 11% and 9%, respectively in early trade. Other large lithium miners and processors lithium America (LAC) and Sigma Lithium (SGML) were over 8% and 16%, respectively.
Spot lithium price increased by about 4% on Monday; Lithium prices increased over 15% last month.
Elon Musk Tesla (TSLA) One of CATL’s biggest customersAccording to a report from the Shanghai metals market. Tesla shares increased by 2% on Monday morning.
US Department of Defense in January Chinese army. This will prohibit the Ministry of Defense from signing supply agreements with the company as of June 2026.
Catl’s movement to close the mine will probably be seen that reflects Beijing’s increasing pressure on “invasic”. Increasing competitive prices for resources such as lithium defeats itself And according to the Financial Times, it slows down instead of slowing down development.
Lithium has exploded for the last few years due to the centrality of the global market, the key role of metal in electric vehicles, storage capacity in electric networks and various electronics, including phones and laptops. Metal demand Growing up to 40% by 2040According to a foresight from the International Energy Agency.
Lithium prices have fallen sharply in the last few years, Fucking to the lowest levels since 2021 in June After 20% of the year, the mines around the world continued to produce rare earth metal, even if it exceeded the demand. According to the FastMarkets data of the commodity pricing agency, production has increased by 55% in China since 2023.
