Chinese battery corporation CATL has halted mining at the lithium mine in Jiangxi Province, China, causing lithium prices to skyrocket. Consequently, the stock prices of domestic lithium-related stocks are also continuing to rise.
As of 9:06 a.m. on the 19th, Hydro Lithium is trading at 3,050 won, up 220 won (7.77%) from the previous trading day. In addition, Lithium For Earth (5.24%), L&F (3.91%), and POSCO FUTURE M (1.03%) are also experiencing a strong upward trend.
The rise in lithium prices continues to break yearly highs consecutively. This is influenced by predictions that lithium production levels will be adjusted, following a temporary halt in mining at lithium mines in China. Notably, on the 18th, the price of lithium carbonate in the Chinese futures market reached 82,708 yuan per ton, setting a new annual high.
Lithium-related stocks are thriving amid the rising lithium prices. With increased product prices and inventory values, there are expectations that this will positively impact earnings, leading to an uptick in stock prices.
There are also projections that the upward trend in lithium prices will continue for the time being. Lee Chang-min, a researcher at KB Securities, noted, "If CATL's suspension of mining demonstrates the Chinese government's commitment to curbing excess production and cutthroat competition, there is a possibility of further measures. The price of lithium, which is greatly influenced by psychological factors regarding supply and demand forecasts, is likely to show an upward trend for the time being."