Investors Speculate China Is Reining in Oversupply of Lithium
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Is Beijing cracking down on EV overcapacity after years of cut-throat price wars?
Over the weekend, CATL, the world’s biggest battery producer, halted production at a major lithium mine in China after a permit had expired. The suspension of operations at the Jianxiawo mine spurred hopes of wider output curbs as China targets overcapacity in the economy. The lithium industry has been struggling with a global supply glut and slowdown in EV demand. Since hitting a record high in 2022, lithium prices have collapsed nearly 90%.