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Investing.com — Shares in major Australian lithium miners rose on Monday after unconfirmed reports that Chinese battery maker CATL would close its main lithium mine on the mainland, potentially tightening supply.
Pilbara Minerals Ltd. (ASX:), Piedmont Lithium Limited (ASX:); Lion Town Resources Co., Ltd. (ASX:), Arcadium Lithium PLC DRC (ASX:) and Mineral Resources Ltd (ASX:) rose 0.8% to 5%, extending gains after a strong session on Friday.
Australian investment bank Barrenjoey has said in an unconfirmed report that Contemporary Amperex Technology (SZ:), commonly known as CATL, will be closed for construction ahead of the Lunar New Year holiday due to high production costs and falling lithium prices. It said it had closed its Xiaowo lithium mine.
The shutdown could result in the loss of around 3% of global lithium supplies, further tightening market conditions and potentially spurring lithium prices higher. CATL is one of the world's largest lithium producers
Lithium prices have fallen by about 80% over the past year due to a decline in demand for electric vehicles, which has squeezed the profit margins of major lithium producers. Australia's lithium stocks were tracking falling prices for battery manufacturing materials.
Still, Australian lithium stocks have continued their solid gains since Friday. albemarle Co-op (NYSE:), the world's largest lithium producer, posted strong earnings and said it expects lithium demand to increase at least threefold by 2030, resulting in higher prices.
