0839 GMT - CATL's suspension of one of its major mines due to a license renewal could drive lithium prices to over 80,000 yuan a ton in the short term before falling back to 70,000 yuan-80,000 yuan a ton, Citi analysts say in a note. Lithium accounted for around 11% of battery cell cost during 1H for the industry. If lithium prices continue to surprise to the upside, battery companies could seek to pass through cost inflation to downstream customers. Citi views the mine suspension as part of Chinese authorities' push to address deflationary pressures and overcapacity in the economy. The suspension of domestic mining of lithium may benefit regional lithium companies and Australian miners but hurt the battery supply chain in the short term. However, this should help China to reprice its strategic resources in the long term, the bank adds. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

(END) Dow Jones Newswires

August 11, 2025 04:39 ET (08:39 GMT)

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