Lithium stocks surged as CATL, the world’s largest EV battery maker, closed its lithium mine in China. Jianxiawo mine, China’s largest lithium mine, will be shut for three months. Albemarle and SQM saw shares rise over 11% and 9%, respectively. Spot lithium price rose nearly 4% on Monday.

CATL’s move to halt operations reflects Beijing’s crackdown on “involution.” Lithium demand is expected to grow by 40% by 2040. Prices previously fell but have recently spiked due to rising demand. Production in China alone has increased by 55% since 2023.

CATL is Tesla’s major supplier. The US Department of Defense added CATL to a list of companies affiliated with the Chinese military. UBS analysts see limited upside in the short term for the lithium market. StockStory aims to help individual investors beat the market.

Read more at Yahoo Finance: Lithium stocks soar after world’s largest EV battery maker shutters mine in China