Lithium futures in China rose sharply on Monday after Contemporary Amperex Technology Co Ltd (CATL) suspended output at a lithium mine in Jiangxi province.
The most active lithium carbonate contract on the Guangzhou Futures Exchange jumped 8%, hitting its daily price limit, following weekend reports of the production halt.
CATL confirmed it stopped operations at the Jianxiawo project in Yichun on August 9 after its mining permit expired. The company said it is expediting the renewal process and expects to resume production once regulatory approval is granted.
The battery maker, one of the world’s largest suppliers for electric vehicles, said the suspension is not expected to materially affect its overall business.
The halt comes amid heightened market sensitivity to supply disruptions in key battery materials, with lithium prices reacting swiftly to changes in production outlook.