Contemporary Amperex Technology plans to restrict production of major lithium mines, Citigroup claims there may be more production cuts, and lithium mining stocks in the US stock market rose in response.

On Wednesday, after Contemporary Amperex Technology, the world's largest electric vehicle battery manufacturer, announced that it was considering suspending some of its lithium mining and production operations, lithium mining stocks in the US surged. At the close on Wednesday, leading lithium miner Albemarle easily became one of the top gainers in the S&P 500 index with a 13.6% increase. Citi analyst Jack Shang quoted industry sources as saying that Contemporary Amperex Technology is considering shutting down one of its lithium spodumene mines in eastern China and three carbonate lithium production lines. He estimated that Contemporary Amperex Technology may also choose to shut down the other two carbonate lithium production lines in the future, reducing supply by as much as 6,000 tons per month from the market. In addition to the potential capacity cuts by Contemporary Amperex Technology, Shang stated that lithium mining output has decreased by 14% in recent weeks. He wrote, "We see sentiment on lithium prices heating up recently, aided by the traditional peak season from September to October and an expected 6% increase in cathode production. This should also accelerate the destocking process for lithium." Other related lithium mining companies also saw gains, including Sociedad Quimica y Minera de Chile S.A. Sponsored ADR Pfd Series B (SQM.US) up 10%, Arcadium lithium (ALTM.US) up 15.5%, Pilbara Minerals (PILBF.US) up 19.1%, Sigma lithium (SGML.US) up 12.8%, Lithium Americas (LAC.US) up 5.9%, and Standard lithium (SLI.US) up 14.4%.