Lithium Miners Sink As CATL Prepares To Restart, Large Deals Continue In The Background

Core Viewpoint - Global lithium producers experienced significant declines following CATL's announcement to resume operations at its Jianxiawo mine earlier than anticipated, adding supply pressure to an already saturated market [1][3]. Group 1: Market Impact - CATL's Jianxiawo mine, one of China's largest lithium sources, produces over 46,000 metric tons of lithium carbonate equivalent annually, accounting for approximately 3% of the projected global supply in 2025 [2]. - Following the announcement, Albemarle's stock fell by 11.5%, Sigma Lithium dropped 6.9%, and Liontown Resources saw an 18.4% decline in Australia [4]. - Lithium carbonate futures in Shanghai decreased by more than 7%, reaching a one-month low [4]. Group 2: Price Trends - The lithium market has faced sustained pressure for over a year, with prices significantly declining from pandemic-era highs [5]. - Spot lithium carbonate prices in China peaked above 600,000 yuan ($84,000) per ton in late 2022 but are now trading below 73,000 yuan ($10,250) [5]. Group 3: Strategic Developments - Despite the current slump, the lithium sector continues to attract strategic deals, indicating long-term optimism regarding lithium's role in the energy transition [6]. - In Chile, Codelco and SQM are nearing a partnership for the Atacama salt flats, which will give Codelco majority control while extending SQM's operating rights to 2060 [7]. - Jindalee Lithium is advancing plans to create a new U.S.-listed lithium company through a merger of its McDermitt project with a special-purpose acquisition vehicle [8].