Lithium Market Shaken by CATL Mine Resumption News from China
Lithium miner shares have dropped globally following a report of the likely resumption of production at CATL's lithium mine in China's Jiangxi province. This potential reopening has led to lower lithium carbonate futures in China, exacerbating challenges in a sector already grappling with weak EV demand.
In a significant development for the lithium industry, shares of lithium miners around the world experienced a downturn following news of Contemporary Amperex Technology (CATL) likely resuming operations at a lithium mine in Yichun, located in southern China's Jiangxi province.
The resumption news sent lithium carbonate futures in China plummeting more than 7% on Wednesday to their lowest in over a month. This potential supply boost has added pressure to a sector already reeling from an unexpected slowdown in electric vehicle demand.
Shares of Albemarle Corp, a major lithium producer, and Sigma Lithium Corp saw significant declines, while Australia-listed miners like Pilbara Minerals faced steep losses. The slowdown has also affected the S&P/ASX 200 index. CATL's operations had been suspended since August due to a license expiry, causing previous elevations in lithium prices.
(With inputs from agencies.)
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