Lithium producers are the Puzzle of the Day, as they took a...

Lithium producers are the Puzzle of the Day, as they took a hammering despite lithium prices remaining stable. Among the big kids absorbing the hits is Pilbara Minerals (ASXLS), which has investors weeping rivers of cash as it dropped ~15.0% this morning.

Liontown Resources (ASX:LTR), Core Lithium (ASX:CXO) and Armada Metals (ASX:AMM) have also fallen hard, shedding ~19.2%, ~16.2% and ~15.3% respectively.

Table talk is that it could be down to local lithium producers being heavily exposed to Asian EV manufacturers that have been beaten mercilessly on Asian markets for the past week – but adding to that puzzle is that it’s happening despite China’s recent announcement of a $2,000 rebate for anyone switching from petrol or diesel-powered vehicles to a new EV, as part of a broader (read: enormous) stimulus package to help the country climb out of the COVID doldrums.