Nio stock trading higher on higher volume following drop in lithium prices

NIO Inc NIO shares are trading higher on above-average volume Monday. The stock appears to be getting a boost from lower lithium prices in China.

According to a report from CnEVPost, the prices of lithium, a key material used in battery production, continue to be lower in China.

The report states that battery-grade lithium carbonate in the country fell more than 1,800 over the weekend.

The current price is close to $45,400, which is close to a 4% slide in less than three days. The decline adds to the fall in prices that have been going on since November.

Spot prices increased by more than tripled between November 2021 and November 2022, due to low supply volumes, according to an Investor's Business Daily report. The report says that the shortfall is leading to oversupply in 2023.

Several U.S. listed China stocks are trading higher Monday, so Nio may also be moving higher due to the strength in China-based names.

The average session volume of Nio over a 100 day period is approximately 40 million, according to Benzinga Pro. The average trading volume of the Monday 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 the time of publication, according to Benzinga Pro.