Lithium Stocks Soar After CATL Shutters Mine in China

Lithium stocks surged early in the week after the world’s largest EV battery maker announced it would close one of the world’s largest lithium mines in China, sending lithium prices sharply higher.

The spike came after Contemporary Amperex Technology Co. Ltd. (CATL) said it was shutting down operations at its Jianxiawo mine in China’s Yichun lithium hub for three months

The spike came after Contemporary Amperex Technology Co. Ltd. (CATL) said Monday morning it was shutting down operations at its Jianxiawo mine in China’s Yichun lithium hub for three months following the expiration of its operating permit, Jake Conley reported for Yahoo Finance.

According to Bloomberg, CATL — which holds more than a third of the global EV battery market — will keep the mine closed while seeking to renew its license.

Shares of Albemarle Corp. (ALB) and Sociedad Química y Minera de Chile (SQM), the world’s two largest lithium producers, jumped more than 11% and 9%, respectively, in early trading. Fellow major miners and processors Lithium Americas (LAC) and Sigma Lithium (SGML) rose over 8% and 16%, respectively.

Spot lithium prices climbed nearly 4% on Monday and have risen more than 15% in the past month. Tesla Inc. (TSLA) — one of CATL’s biggest customers, according to the Shanghai Metals Market — saw its shares rise 2% early Monday.

In January, the U.S. Department of Defense added CATL to a list of companies it says are affiliated with the Chinese military, a designation that will prohibit the Pentagon from signing procurement contracts with the firm beginning in June 2026.