Lithium stocks surge after Chinese mine suspends production
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On Monday, Lithium stocks reported that battery manufacturer Contemporary Amperx technology had suspended production in a mine in China, which plays a key role in reaching the global market.
US miner’s shares AlbemarleCharlotte increased by 11% in North Carolina, and as investors expected to increase lithium prices as the supply decreased, SPROTT lithium miners ETF increased by about 6%.
In his statement to CNBC, Catl suspended production in the Yichun project after the permission of the mine ended on Saturday. The company said it will continue to produce lithium in the mine as soon as it works to renew the permission and as soon as it gets approval.
According to Morgan Stanley, the mine produces about 4% of global lithium supply forecast for 2025. According to the investment bank, the balance of lithium supply and demand was already bored, a small surplus is expected in 2025.
“Jianxiawo is likely to approach the balance in the rest of the year and bring risks to prices, depending on the length of the Jianxiawo deduction and another place, depending on the length of the deduction of Jianxiawo.” Jianxiawo SPECIAL CATL MINE In China’s larger Yichun project in Jiangxi province.
