🔴 Website 👉 https://u-s-news.com/
Telegram 👉 https://t.me/usnewscom_channel
Sopa Images | Lightrocket | Getty Images
Lithium stocks surged Monday on reports that battery maker Contemporary Amperex Technology (CATL) suspended production at a mine in China that plays a key role in supplying the global market.
Shares of U.S. miner Albemarle, based in Charlotte, N.C., jumped 11% and the Sprott Lithium Miners ETF rose about 6% as investors expected lithium prices to rise as supply falls.
CATL has suspended production at the Yichun Project after the mine’s permit expired Saturday, the company told CNBC. It is working to renew the permit and will resume lithium production at the mine as soon as it receives approval, the company said.
The mine in question produces about 4% of global lithium supply forecast for 2025, according to Morgan Stanley. The lithium supply and demand balance was already tightening, with a small surplus expected in 2025, according to the investment bank.
“Depending on the length of the Jianxiawo outage, and if there are any further disruptions elsewhere, the market is likely to move closer to balance in the remainder of the year, bringing upside risk to prices,” Amy Gower, a commodity strategist at Morgan Stanley, told clients in a Monday note. Jianxiawo is the specific CATL mine within the larger Yichun Project in China’s Jiangxi province.