Contemporary Amperex Technology Co. Ltd. (CATL), the world's largest electric vehicle battery manufacturer, has suspended production at its Jianxiawo lithium mine in Yichun, Jiangxi province, China, for at least three months following the expiration of its mining license on August 9. CATL has announced it is applying to renew the license and expects minimal impact on its overall operations. The Jianxiawo mine accounts for approximately 6% of global lithium output. The suspension has triggered an 8% surge in lithium carbonate futures on Chinese exchanges and has led to sharp gains in lithium-related stocks, including Ganfeng Lithium and Tianqi Lithium, which rose by more than 10% in Hong Kong trading. The move is seen as part of Beijing's broader effort to curb overcapacity in the lithium industry amid concerns of oversupply. The production halt has also boosted shares of North American lithium miners and other global lithium producers such as Albemarle. Market analysts caution that while the suspension has tightened supply temporarily, uncertainties remain regarding the extent of future output cuts in China. The development has heightened speculation that Chinese authorities may suspend additional lithium mining projects as part of an ongoing crackdown on industry overcapacity.