Lithium carbonate prices in China and shares of Australian-listed lithium mining companies rose following CATL’s lithium mine shutdown.
According to the sources, the shutdown was due to the company’s failure to renew a critical mining license, which expired on August 9.
The Jianxiawo mine is a major domestic lithium resource base for CATL, accounting for roughly 3% of global lithium supply.
During the shutdown, associated refineries in Yichun—known as the “Lithium Capital of Asia”—were also notified to halt operations.
Sources said CATL is currently negotiating license renewal with relevant government departments and plans to resume production as soon as approval is granted, though the company is prepared for a multi-month suspension. CATL stated that the impact on overall operations is limited.
Bloomberg noted that the license issue and shutdown coincide with China’s regulatory push to address overcapacity in multiple industries and to tighten oversight of mining activities.
In 2022, lithium prices in China surged, with battery-grade lithium carbonate peaking at RMB 600,000 ($84,000) per ton in November. Prices have since fallen nearly 90%, now around RMB 70,000 ($9,800) per ton, due to increased supply and slower-than-expected EV demand growth.
Since the start of this year, multiple companies have cut spending and delayed expansion. In such a climate, temporary halts at key supply chain points may help ease market supply pressure.
Following the shutdown news, lithium carbonate futures surged. On August 11, the main lithium carbonate contract on the Guangzhou Futures Exchange hit the 8% daily limit, rising from RMB 75,000 ($10,500) per ton last Friday to RMB 81,000 ($11,340).
Shares of several Australian lithium miners—including PLS (previously known as Pilbara Minerals), Liontown Resources, and Mineral Resources—jumped more than 10% intraday on the news.
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