🔴 Contemporary Amperex Technology Co., Limited is trading 7.4% down today as it plans to reduce its stake in a key supplier

Contemporary Amperex Technology Co., Limited is trading 7.4% down today at $6.85 following the announcement of a planned stake reduction in a key materials supplier, coupled with a broader sell-off in lithium-related stocks.

• CATL intends to reduce its holding in lithium iron phosphate (LFP) material producer Hunan Yuneng New Energy Battery Material Co., Ltd. by up to 3% of the company's total equity.
• Another major shareholder is also reducing its stake, and if both sales are completed, CATL's ownership will fall below 5%.
• The move comes amidst general weakness in the lithium sector, with analysts projecting a decline in lithium carbonate prices in June due to increasing supply and weaker demand-side momentum.