After soaring to record highs in 2022, prices of lithium, which is critical to the world's transition to greener energy, have tumbled almost 90%, prompting producers around the world to scale back investment plans.

The world’s largest battery maker CATL said it was suspending operations at a lithium mine in China, sending shares of other producers soaring on speculation that Beijing is moving to tackle industrial overproduction.

Contemporary Amperex Technology’s suspension of production at a major lithium mine in mainland China is a clear sign of Beijing’s aggressive stance towards curbing overcapacity in the electric vehicle (EV) battery sector,