Lithium stocks surge after Chinese mine suspends production

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Lithium stocks surged Monday on reports that battery maker Contemporary Amperex Technology (CATL) suspended production at a mine in China that plays a key role in supplying the global market.

Shares of U.S. miner Albemarle

, based in Charlotte, N.C., jumped 11% and the Sprott Lithium Miners ETF rose about 6% as investors expected lithium prices to rise as supply falls.

CATL has suspended production at the Yichun Project after the mine’s permit expired Saturday, the company told CNBC. It is working to renew the permit and will resume lithium production at the mine as soon as it receives approval, the company said.