The lithium industry is a sea of red on Monday.
A large number of ASX lithium shares are under pressure and have sink deep into the red today.
What's going on with ASX lithium shares?
Investors have been selling down ASX lithium shares on Monday in response to heavy declines from their Wall Street-listed peers on Friday.
Lithium giants Albemarle, Livent, and SQM all fell 10% amid concerns over lithium prices.
This was driven by reports that the world's largest battery maker, CATL, is offering discounts to some of the Chinese automakers it supplies batteries.
According to Reuters, these discounts are being offer in response to a downturn in the price of lithium and a bid to win more orders. CATL has also reportedly been negotiating with its lithium suppliers to bring prices down.
This appears to indicate that CATL, which has a 37% global share of the EV batteries market, is confident that lithium prices have peaked and are now on the way back down again.
The state of play
Most ASX lithium shares are trading sharply lower today. Among the biggest moves are the shares listed below:
- The Allkem Ltd (ASX: AKE) share price is down 5% to $11.30.
- The Core Lithium Ltd (ASX: CXO) share price is down 4% to 92 cents.
- The Lake Resources N.L. (ASX: LKE) share price is down 5% to 60.5 cents.
- The Liontown Resources Ltd (ASX: LTR) share price is down 4% to $1.29.
- The Piedmont Lithium Inc (ASX: PLL) share price is down 13% to 93.5 cents.
- The Pilbara Minerals Ltd (ASX: PLS) is down 7% to $4.10.
Time will tell what happens with prices, but it seems that many investors are not sitting around to find out. Particularly given how spot prices have now fallen 30% since their November peak.
