Overview

• CATL suspended production at its Jianxiawo lithium mine in Jiangxi Province for at least three months under a government directive to curb excess output
• The shutdown forms part of Beijing’s campaign to address chronic overcapacity in lithium and related renewable sectors after profits plunged and weaker players exited
• Lithium carbonate futures jumped by 8 percent on the Guangzhou exchange following the mine idling announcement
• Australian-listed lithium mining stocks rallied with double-digit gains as investors anticipated tighter global supply
• China’s battery manufacturing capacity now exceeds domestic demand by twofold and global needs by 20 percent, pushing firms to revise expansion plans and trim spending