NIO Inc NIO shares are trading higher on above-average volume Monday. The stock appears tobe catching a boost from lower lithium prices in China.
What To Know: The prices of lithium, a key material used for battery production,continueto trend lowerin China, according to a CnEVPost report.
The report indicates that battery-grade lithium carbonate in the country fell more than $1,800 over the weekend.
Current prices are sittingaround $45,400, marking close to a4% slide in less than three days. The decline adds to a trend of falling prices that has continued since late November.
According to an Investor's Business Daily report, spot prices more than tripled between November 2021 and November 2022 amid low supply volumes. The report suggests that the shortfall is leading to oversupply in 2023.
Several U.S.-listed Chinastocks are trading higher Monday, so Nio may also be moving higher amid overall strength in China-based names.
Nio's average session volume over a 100-day period is approximately 40 million, according toBenzinga Pro. Monday's average trading volume has already exceeded 45 million in early afternoon trading.
See Also:5 Best Chinese Stocks Right Now
NIO Price Action: Nio shares have a 52-week high of $24.42 and a 52-week low of $8.03.
The stock was up 4.94% at $8.67 at time of publication, according toBenzinga Pro.
Photo: courtesy of Nio.