From The West today re lithium price expected to jump 11-23% for...

From The West today re lithium price expected to jump 11-23% for the rest of the year due to CATL's closure:

Shareholders in listed lithium mining companies collectively gained billions of dollars on Wednesday after months of doom and gloom.

In morning trade WA’s spodumene concentrate producers surged — Mineral Resources by 17.2 per cent, Pilbara Minerals by 12.7 per cent, IGO by 12.3 per cent and Liontown Resources by 11.5 per cent — following prolonged and heavy share price falls this year.

Local explorers also rose sharply, led by Wildcat Resources leaping 22 per cent.

The gains are linked to reports overnight that Chinese mining and battery manufacturing titan, CATL, closed its massive Jianxiawo mine amid the ongoing lithium price downturn.

Jianxiawo produces lepidolite, a spodumene substitute, and is responsible for a material chunk of the world’s upstream lithium supply.

The prevailing spodumene concentrate benchmark price has tumbled from above $US3200 a tonne a year ago to sit at $US730/t currently.
US giant Albemarle, however, recently sold a parcel of the battery ingredient in China for $US870/t.

“The spot price has been below CATL’s cash cost level since mid July 2024,” UBS told select clients on Wednesday.

“After making a loss for two months in the lithium business and continuous downside risk on the lithium price, we finally see normal supply response from (the) marginal-cost producer.”

UBS says it expects the mine suspension to lift lithium prices upwards between 11 per cent and 23 per cent for the rest of 2024.