Shares in IGO Ltd. dropped sharply after the Australian miner slashed production guidance for Greenbushes, the world's largest hard-rock lithium operation. The stock fell as much as 14% on the news, signaling investor concerns about near-term supply from the critical battery metals project.

Greenbushes, located in Western Australia, supplies a significant portion of global lithium concentrate. The guidance downgrade marks a setback for the electric vehicle supply chain, which has been grappling with raw material shortages and volatile pricing. IGO operates the mine in partnership with Tianqi Lithium and other stakeholders.

The production shortfall could tighten lithium supply at a time when demand from EV manufacturers remains robust. The market reaction reflects mounting pressure on miners to deliver consistent output amid operational challenges in the sector.