12:11 PM EDT, 08/11/2025 (MT Newswires) -- National Bank Financial on Monday said it expects the shares of lithium companies to rise as the price of the metal climbed after Contemporary Amperex Technology (CATL) suspended operations at its Jianxiawo mine in China.

"On August 10, CATL announced that it has suspended production at its Jianxiawo mine in the Jiangxi province, where it was unable to obtain the necessary permits to continue to operate ... The suspension of operations at CATL highlight the potential supply risk that exist over supply coming out of China. The recent revised Mineral Resources Law and permitting requirements could materially reduce the surplus we currently forecast in 2025, 2026 and 2027 depending on the length of shutdown," analyst Mohamed Sidibe wrote.

"While the duration of these shutdowns remain uncertain, they are likely to contribute to the continued outperformance of lithium equities within our coverage universe QTD: PMET +68%, LAR+35%, LIRC+25%, LI +21%, LAC +5% as at August 8, 2025. We continue to prefer Patriot Battery Metals ( PMETF ) (PMET, OP, $6.75 PT) and Lithium Royalty Corp (LIRC, OP, $6.50 PT) for exposure to the space. In a rising lithium price environment, we are also constructive on Lithium Argentina (LAR, SP, US$2.90 PT), where the ramp up continues to advance well and cost control and impurities reduction is benefiting the bottom line."

Price: 4.24, Change: +0.40, Percent Change: +10.42