LTR: Short squeeze coming for shorters - 2nd highest likelihood in all ASX, page-3772

..may be a reaction to this.

..curtail battery production in the interim, so less demand

China issues draft rules to regulate booming lithium battery expansion
Story by Reuters
• 22h • 1 min read

BEIJING (Reuters) - China issued draft rules on Wednesday to regulate its lithium battery market, after rapid expansion in the sector hit industry profits and sparked concerns about overcapacity in international market.

The proposals, issued by the Ministry of Industry and Information Technology, are intended to safeguard the healthy development of the lithium battery sector, the ministry said.


The rules would guide lithium battery firms to reduce manufacturing projects that 'purely' expand production capacity.

They would also require projects built on farmland and ecological zones to be shut down or put under strict controls and gradually removed.

Rapid expansion of production capacity along the lithium battery supply chain has led to a plunge in prices for products including battery and raw materials, hitting companies' profits in the world's biggest market.