Retail Buzz Builds Around Albemarle As China Approves CATL Mine Restart — Traders Bet On Long-Term Lithium Boom
China’s approval of CATL’s mine reserves eased supply concerns and reignited debate over the future of lithium demand amid a prolonged price slump.
Retail chatter around Albemarle spiked on Tuesday following China’s approval of mine reserves for Contemporary Amperex Technology’s (CATL) suspended Yichun project, signaling the mine could soon restart and easing concerns about supply disruptions.
Albemarle shares declined alongside global lithium producers after China approved mine reserves for CATL in Yichun, Jiangxi Province. The decision brings the company closer to restarting production at its Jianxiawo lithium mine, which has been offline since August after CATL failed to renew its mining license, according to a Bloomberg report.
Shares of Albemarle fell 6.7% to close at $81.08 on Tuesday but recovered slightly in after-hours trading, rising 0.8%.
In August, CATL said it was processing its renewal application “as soon as possible” and would resume operations once approval was obtained.
Production at the mine was reportedly expected to be halted for at least three months at the time, which had raised concerns about supply shortages in the global lithium market. Those worries eased after Tuesday’s approval, leading to a sharp sell-off in lithium stocks as investors anticipated a quicker return of Chinese supply.
In Australia, Liontown Resources dropped as much as 9.9%, Pilbara Minerals fell 7.9%, and IGO Ltd. declined 6% on Wednesday. In the U.S., Sociedad Química y Minera de Chile (SQM) also traded lower, along with Albemarle.
The lithium market has been under pressure amid a 90% price collapse over the past two years, driven by oversupply from China and weaker demand for electric vehicles. The glut has forced producers such as Albemarle to scale back operations and cancel refinery projects in the U.S.
Martin Jackson, head of battery raw materials at CRU Group, said China’s Ministry of Natural Resources appeared to be taking a proactive and market-aware approach to licensing, suggesting an effort to stabilize lithium supply.
On Stocktwits, retail sentiment for Albemarle was ‘bullish’ amid ‘high’ message volume.
One user said that Albemarle’s monthly moving average convergence divergence (MACD) crossover signaled strong momentum, predicting surging lithium demand from electric vehicles and forecasting the stock could return to 3,000 by 2030.
Another user said Albemarle was a $200 stock sooner or later and urged investors to accumulate while prices remain low.
Albemarle’s stock has declined 4% so far in 2025.
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