Liontown leads lithium selloff as China refinery restarts
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The news: Liontown Resources led a selloff in lithium miners on the ASX, after China's Contemporary Amperex Technology (CATL) and Jiangsu Lopal Tech announced they are restarting their lithium carbonate refinery after a five-month halt.
The numbers: Liontown (-6.8%) was the worst performing ASX 200 company by 2:30pm AEDT. Fellow lithium miners Mineral Resources (-3.9%), IGO (-3.3%) and Pilbara Minerals (-2.5%) also slumped as the materials sector held roughly flat.
CATL and Lopal's refinery is expected to produce around 3,500 tonnes this month, Lopal told Bloomberg.
The context: The restart has dented hopes for a lithium price recovery, adding to oversupply amid slower-than-expected growth in global demand for electric vehicles.
Prices for the battery metal have tumbled nearly 90% since late 2022.
The refinery in Yichun, China suspended production in September, triggering a surge in Australian lithium stocks.
The source: Bloomberg
