https://www.miningweekly.com
Mining|Resources
Mining|Resources
mining|resources

Australian lithium stocks rally on speculation of China mine closure

19th February 2024

By: Reuters

  

Font size: - +

MELBOURNE - Australian lithium stocks rallied on Monday on speculation that Chinese battery maker CATL had closed its Jianxiawo mine in China that produces the material used in electric vehicle batteries.

Shares of Australia's biggest pure play lithium miner Pilbara Minerals rallied as much as 4.9% and Liontown Resources surged 7.7%, amid an upbeat tone in Australian resources companies.

Jianxiawo produces lepidolite, which is a high-cost form of lithium.

CATL did not immediately respond to a Reuters request for comment.

"CATL are apparently reluctant to continue production below 95 000RMB/t (~US$13 000/t) for lithium carbonate," Barrenjoey said in comments on Friday.

That mine, which would provide 3% of global supply, would move the market from a 1% surplus to a 2% deficit of around 20 000 for 2024, it said.

In Australia on Monday, developers saw outsize gains, with Patriot Battery Metals as high as 6%, Wildcat Resources up 5.8%, and Sayona Mining up 7.7%.

Pilbara Minerals is Australia's most heavily shorted stock, given investors have viewed it as a proxy for a slowdown in electric vehicle demand.

Lachlan Shaw, analyst at UBS, said it was not uncommon for facilities in China to shut or slow during Chinese New Year holidays.

"If confirmed that Jianxiawo has shut, and that the shut is on economic grounds rather than temporarily for Chinese New Year, it's an important step in the necessary market rebalancing that we are looking for," said Melbourne-based Shaw.

"A key question is why the world’s biggest battery manufacturer who is growing quickly would shut their fully integrated lithium mine when lithium prices are around UBS’ understanding of break even levels."

Edited by Reuters

Comments

Latest News

Gina Rinehart
Rinehart takes stake in Lynas Rare Earths, shares jump
Updated 4 hours ago By: Reuters

Showroom

Willard
Willard

Rooted in the hearts of South Africans, combining technology and a quest for perfection to bring you a battery of peerless standing. Willard...

VISIT SHOWROOM 
Yale Lifting Solutions
Yale Lifting Solutions

Yale Lifting Solutions is a leading supplier of lifting and material handling equipment in Southern Africa. Yale offers a wide range of quality...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Photo of Martin Creamer
On-The-Air (12/04/2024)
12th April 2024 By: Martin Creamer

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.089 0.127s - 107pq - 2rq
1:
1: United States
Subscribe Now
2: United States
2: