Shares of lithium companies including, Sociedad Quimica y Minera , Albemarle Corporation ( ALB ) and Lithium Americas Corp. ( LAC ) are trading higher Wednesday amid a rise in the price of lithium. The Chinese company Contemporary Amperex Technology reportedly stopped production at its mine in Jiangxi.

What To Know: The halt at this major mine may alleviate oversupply concerns. UBS Analysts, led by Sky Han, explained that the stop will prompt an 8% drop in China’s lithium output, according to Bloomberg.

Lithium shares have struggled throughout the past year as lithium supply has exceeded demand. The drop in China’s lithium output could aid in rebalancing lithium supply and demand.

UBS reportedly mentioned it has a, "higher conviction this time” that the Jiangxi mining halt news is true. Past reports about halted mining operations have been shown to be false.

Related Link: Canada Nickel Receives $500M Loan Interest From Government Agency For Ontario Project

Price Action: At the time of writing, Sociedad Quimica y Minera stock is moving 10.4% higher at $38.53, Albemarle stock is moving 8.42% higher at $85.27 and Lithium Americas ( LAC ) stock is trading 6.61% higher at $2.35 per data from Benzinga Pro.

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