American Battery Soars 6.48% as China's EV Infrastructure Push, Lithium Demand Surge Drive Rally

American Battery surged 6.48% in pre-market trading on Dec. 12, 2025, fueled by optimism around lithium demand and policy-driven infrastructure growth in China.

The rally followed lithium carbonate futures in China hitting a 18-month high above ¥94,000/tonne, driven by Beijing’s pledge to double EV charging capacity to 180 gigawatts by 2027. This aligns with government-backed energy storage incentives and surging new energy vehicle production, which rose 33.1% year-to-date.

Major producer Ganfeng signaled a 30% demand increase for lithium in 2026, while CATL’s restart of its Jiangxi mine—resumed after regulatory delays—hinted at tighter supply dynamics. These factors collectively underpinned investor confidence in battery-related equities ahead of the year-end.

Analysts noted that the market’s reaction to lithium price trends reflects broader anticipation of green energy policy acceleration in 2026. Institutional buyers have been accumulating long positions in firms with exposure to lithium processing and battery recycling, suggesting a strategic pivot toward supply chain resilience. Meanwhile, speculative short-term traders remain cautious amid regulatory uncertainty in the mining sector. With the U.S. also advancing its own battery value chain initiatives, the global lithium trade is expected to see heightened geopolitical and financial activity in the coming quarters.

The surge in American Battery’s stock has drawn comparisons with recent trends in other green technology stocks, particularly those involved in energy storage and rare earth materials. Investors appear to be factoring in long-term growth potential, despite near-term risks such as oversupply concerns in the lithium market. This contrasts with bearish sentiment in fossil fuel equities, which have faced continued pressure from divestment trends and carbon pricing mechanisms. Analysts suggest that the current momentum in battery stocks may not be fully sustained unless macroeconomic indicators support continued infrastructure spending and energy policy enforcement in 2026.

Looking ahead, the interplay between policy, production, and price will remain critical in determining the trajectory of battery metals and the broader clean energy sector. With major stakeholders from both the public and private sectors reinforcing their commitments, the next few months will be pivotal in shaping investor sentiment and market structure in this high-growth industry.