Lithium prices skyrocket as major Chinese mine shuts down

Lithium prices, used for battery production, surged sharply on Monday.

According to Report, which cites RBC-Ukraine, it happened amid the closure of one of the largest lithium mines in China.

Contemporary Amperex Technology (CATL), the world’s largest battery manufacturer, confirmed the closure of its Jianxiawo mine in China following the expiration of its license.

Bloomberg reports that production will be halted for at least three months. This mine accounts for about 6% of global lithium production, while other mines in the region account for at least another 5%.

This move by the giant company shook the market. Prices for the battery metal on the Guangzhou futures exchange hit the daily limit. Shares of the Chinese company Tianqi Lithium rose by 19%, and Ganfeng Lithium shares increased by 21%.

Lithium is a light metal characterized by high reactivity and is used in various industries, including medicine, electronics, and battery manufacturing.