Lithium prices and stocks spiked on Monday after battery giant Contemporary Amperex Technology Co. Ltd. halted operations at a major mine in China, spurring speculation that Beijing might move to suspend other projects as it tackles overcapacity across the economy.

Tianqi Lithium Corp. jumped as much as 19% in Hong Kong, while Ganfeng Lithium Group Co. surged 21%, and Australian miners rallied, after CATL confirmed it had shut the mine in Jiangxi province. Prices of the battery metal on the Guangzhou Futures Exchange hit the daily limit and held firm throughout the day. In North America, shares of U.S. producers Albemarle Corp. and Piedmont Lithium Inc. surged above 10% in premarket trading in New York. Lithium Americas Corp. and Chilean producer SQM rose around 9% in early U.S. trading.

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