Tesla Trauma Shows Lithium Market Needs to Chill

Renewable Energy World: Isn’t lithium meant to be a mood stabilizer?

That’s certainly not what’s happening in the stocks of companies that produce the element used in rechargeable batteries and psychiatric medications. News this week that Tesla Inc. sent a memo to some suppliers asking them for payment rebates to help it become profitable shook shares in lithium miners.

The Solactive Global Lithium Index, in which FMC Corp., Albemarle Corp., and Sociedad Quimica y Minera de Chile SA or SQM have a weighting of about 40 percent, fell as much as 2.1 percent Monday to its lowest level in 11 months. SQM slumped as much as 4.8 percent, while Albermarle dropped 4.1 percent.

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