Lithium stocks soared early Monday after the world's largest EV battery maker closed its lithium mine in China, sending lithium prices soaring. The spike in lithium companies' stocks comes after Contemporary Amperex Technology (C7A0.

The supply of metal used for electric vehicles and computer batteries has been growing, but stocks of lithium companies are rallying as another mine shuts down.

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.