Investing.com -- Shares in lithium-related stocks jumped on Wednesday after analysts reported that Chinese electric vehicle battery maker Contemporary Amperex Technology is mulling a possible suspension to its massive lepidolite mine in eastern China.
In the report dated Sept. 11, analysts at UBS said the potential suspension by the company -- better known as CATL -- would reduce around 8%, or roughly 5,000-6,000 metric tons, of China's monthly lithium carbonate equivalent (LCE) production.
"It's not the first time for us to hear CATL to cut/suspend lithium production in Jiangxi. Although the previous news turned out to be speculation, we get higher conviction this time," the analysts wrote.
In response to the report, CATL said it is planning to make adjustments to lithium carbonate production in the Chinese city of Yichun based on recent market conditions, according to Reuters.
Analysts at Citi said in a separate note that CATL is also weighing whether to halt operations at one of its three lithium carbonate production lines, the Wall Street Journal reported.
Lithium is seen as playing a key role in a broader green energy transition. The metal is used in the batteries powering EVs, although weak demand for the cars and an increase in new mines has dented its appeal. The unconfirmed reports that CATL is reining in output sparked hopes that the supply glut could soon be easing.
"CATL's suspension of lithium operation in Jiangxi will [...] help rebalance the supply with demand," the UBS analysts said.
In Australia, shares in lithium miners Pilbara Minerals (ASX:PLS) and Mineral Resources (ASX:MIN) spiked. Elsewhere, US shares in Arcadium Lithium (NYSE:ALTM), Lithium Americas Corp (NYSE:LAC), Albemarle (NYSE:ALB), and Lithium Americas (NYSE:LAC) also jumped in premarket trading on Wall Street.
Reuters contributed to this report.
Related Articles
Lithium-related shares rise on report China's CATL may slash supply
Dollarama beats quarterly profit view on lower costs, stable demand
Too early to buy into weakness among Europeâs China proxies: Citi
免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。