Lithium Stocks Surge as Chinese Mine Closes After Permit Expires
The CATL Jianxiawo lithium mine in Yichun, Jiangxi province, China.
Photographer: Gilles Sabrie/BloombergShares of North American lithium producers soared as investors bet that the suspension of a major Chinese mine would ease a supply glut and likely lead to a rebound in prices.
CATL, the world’s biggest battery producer, confirmed the closure of its Jianxiawo mine on Monday, saying it’s seeking to renew its expired permit. The fate of the mine, the largest in China’s lithium hub of Yichun, had been under close scrutiny for weeks amid speculation that authorities wouldn’t extend its license. The mine accounts for about 6% of global output, according to Bank of America Corp.