Lithium production facility in the Atacama Desert, Chile. /Courtesy of Reuters·Union

As lithium prices fluctuate, centered around China, domestic lithium and secondary battery-related stocks are showing strength.

POSCO M-Tech shares traded at 13,690 won on the Korea Securities Dealers Automated Quotations (KOSDAQ) at 9:28 a.m. on the 18th. The stock price rose by 17.61% (2,050 won) compared to the previous day. POSCO M-Tech became a lithium-themed stock associated with POSCO Group's lithium business in Argentina.

At the same time, other lithium-themed stocks such as Lithium For Earth, Youil Energytech, and Hydro Lithium also jumped over 20%.

Secondary battery material stocks are also strong. Shares of POSCO FUTURE M, Ecopro, and LG CHEM are trading at higher prices than the previous day.

This seems to be influenced by the recent highest spot price of lithium in China in the past three months. The mixing of expectations that lithium oversupply will be controlled and reports that some mines have closed has driven up prices.

Previously, the stock prices of lithium-related stocks in China and the United States also surged. Tianqi Lithium and Ganfeng Lithium each rose by over 4% and 5% on the Hong Kong Stock Exchange the previous day. Albemarle (ALB) shares jumped more than 7% overnight on the New York Stock Exchange.

However, there are analyses suggesting that the rise in lithium prices may be a temporary phenomenon. JP Morgan noted in a report that there is more supply than demand for lithium, and because the current price increase was driven by high expectations, there is a significant likelihood of a decline again. They also advised treating the increased stock prices as a selling opportunity.

※ This article has been translated by AI. Share your feedback here.