From Seeking Alpha... Lithium producers push higher as U.S. rules seen unlikely to upend supply chains. Dec. 06, 2023 Albemarle (NYSE:ALB) +5.7% and Livent (NYSE:LTHM) +7.6% in Wednesday's trading, leading lithium stocks with broad gains, after the U.S. government's new rules aimed at limiting China's grip on the electric vehicle industry were less stringent than feared, according to Bloomberg. Also, Lithium Americas (LAC) +3.8%, SQM (SQM) +3.1%, Sigma Lithium (SGML) +2.7%.The U.S. moves, which seek to cut China out of U.S. tax credits and curb the country's control over joint ventures, initially created uncertainty, but while Chinese state-owned entities will be cut out under the regulation, significant projects in places like Indonesia and Australia are privately held, which under current guidance should not qualify as "foreign entities of concern.""The U.S. wants their own supply chain and to get rid of China, but they also realize they cannot proceed with the electrification of automobile industry if they are not flexible in terms of including the Chinese," Dani Widjaja, a VP at Chinese company CNGR Advanced Material Co., told Bloomberg. Bloomberg also reported a sudden jump in the share prices of Chinese lithium producers has sparked optimism that a rout in the EV battery metal may be coming to an end. The downward trend for lithium is "already nearing an end," China Futures Co. analyst Zhang Weixin told Bloomberg.ETF: (LIT)
CXO Price at posting:
27.0¢ Sentiment: Buy Disclosure: Held
