CATL Mine Closure Boosts Lithium Stocks Albemarle (ALB) – A Turning Point in the Commodity Market or Just a Short-Term Effect?
CATL's mine closure could be the first step towards a long-overdue market correction in the lithium sector!
After a 90% price drop since 2022, lithium stocks offer tremendous recovery potential for daring investors!
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I see the closure of CATL's Yichun mine as a significant turning point for the beleaguered lithium sector. The suspension of this mine, which accounts for 3% of global lithium production by 2025, indicates to me that China is serious about its fight against lithium overcapacity. The subsequent stock price jump for Albemarle (+10%) and other lithium producers reflects the hope that supply-side reforms could finally take effect. After the devastating lithium price collapse of nearly 90% since the record highs of 2022, the sector was overdue for a...
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