A recent rally in lithium prices in Australia could ease pressure on struggling producers, prompting them to halt project sales. Shares in Australian lithium miners have surged after supply cuts in China. Analysts say the rally, while driven by speculators, will help producers facing financial challenges. Prices of hard rock spodumene have rebounded, but uncertainties remain over China’s supply cuts. Chinese electric vehicle battery maker CATL suspended mining operations. Australian lithium miners are among the ASX stock exchange’s top five most shorted companies. Debt-laden MinRes’s sale process for its lithium assets failed due to high price tags. IGO and SQM are reviewing options for their operations. Australia’s production cuts may cool prices despite recent rallies. Pilbara Minerals could restart plant operations if conditions improve.

Read more at Yahoo Finance: Analysis-Lithium rally promises breather for struggling Australian miners