China’s Contemporary Amperex Technology Co. Ltd. (CATL) halted production for at least three months at its Jianxiawo lithium mine in Jiangxi province.
- The suspension, triggered by the expiry of its mining permit on August 9, has fuelled speculation of wider supply cuts as Beijing seeks to curb overcapacity
- Analysts cautioned the move is unlikely to fundamentally change the market’s oversupply
- Other analysts said prices may temporarily move away from “reasonable levels,” with greater upside potential if other Yichun mines face similar disruptions after September 30
- Citi analysts also expect no lasting supply deficit but see the suspension as a short-term boost to sentiment.
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Australian lithium stocks have jumped. As has the benchmark Australian index, the S&P/ASX 200 has hit a record high above 8852.
