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.

(Reuters) -Shares of lithium producers surged on Monday after Chinese battery giant Contemporary Amperex Technology (CATL) halting output at a major mine raised hopes it would erode the oversupply in a market grappling with soft demand.

Contemporary Amperex Technology Co. Limited (CATL), the world's largest EV battery manufacturer, confirmed it has halted output at its Jianxiawo lithium mine in Jiangxi after its mining permit expired on August 9,