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On Monday, August 11, global lithium prices rose sharply after Chinese battery manufacturer CATL (Contemporary Amperex Technology) suspended the operation of one of the world's largest deposits in Jiangxi Province. About writes Bloomberg.

Shares of Chinese mining companies Tianqi Lithium and Ganfeng Lithium jumped 19% and 21% on the Hong Kong stock exchange, respectively. Australian lithium miners also showed sharp growth: PLS shares rose by 19% and Liontown Resources by 25%.

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The suspended Jianxiawo deposit accounts for about 6% of global lithium production. Its development license expired on August 9, and the company is now trying to renew it. The shutdown is expected to last at least three months.

Although CATL says this will have little or no impact on battery production, investors fear that the authorities may extend the restrictions to other mines in the region. This could lead to a shortage and an even greater increase in lithium prices.

Futures for lithium carbonate in Guangzhou have already risen by the maximum allowed 8% per day, to 81,000 yuan (approximately $11,150) per ton.

Experts say that if China extends production restrictions beyond September 30, the lithium market may face a new wave of price increases.