Catl battery stance on lithium problem

Is CATL's sodium-ion battery a threat to the lithium industry?

Earlier this month Adamas Intelligence spoke with Reuters about the implications of CATL’s newly-unveiled sodium-ion (“Na-ion”) battery for the lithium industry. Our take: Not a major threat. We’ll keep you posted on the latest news and developments affecting markets and supply chains.

How has CATL's closure impacted the lithium industry?

Lithium spot prices have plummeted by around 90% since 2022, leading to vital mine closures and market shifts worldwide. However, CATL’s recent shutdown in Jiangxi, China, stands out as one of the most significant closures to date. What led to this decision, and how has it impacted the global lithium industry?

Is CATL planning to stop producing lithium carbonate in Jiangxi?

Additionally, CATL is considering pausing one of its three lithium carbonate production lines in Jiangxi. This news has garnered significant attention across the lithium market. According to UBS Lithium Analyst Sky Han, this mine accounts for roughly 5% of the world’s primary lithium supply and about 20% of China’s supply.

What happened to lithium carbonate futures after CATL announcement?

Following the CATL announcement, lithium carbonate futures on the Guangzhou Futures Exchange rose by 5.5%, hitting 76,700 yuan per ton ($10,700), although they remain down 27% for the year. Several lithium producers in Australia, including Arcadium Lithium Plc and Core Lithium Ltd., have shut down high-cost sites due to plummeting prices.

Will Lithium prices stabilize?

With reduced output from one of China’s largest mines, experts anticipate that lithium prices could stabilize, potentially offering relief to struggling producers. The significant cost outcomes include: Prices could stabilize between $10,000 and $11,000 per ton, reflecting global cash costs.

Why is CATL adjusting its operations?

In conclusion, as lithium prices continue to plunge, CATL’s actions are crucial for stabilizing the supply chain. The company is adjusting its operations to navigate the tough market conditions, hinting at possible shifts in the industry’s lithium production strategies in the coming months.