Mining activities at the Yichun project have been temporarily halted, according to CATL's announcement.
Contemporary Amperex Technology (CATL), a Chinese electric vehicle battery manufacturing giant, has announced that it will resume production at its Jianxiawo lithium mine once the mining license is renewed. The mine, operated by CATL, is a major global lithium source, producing about 3-6% of the world’s lithium carbonate equivalent (LCE) output.
The suspension of mining operations, which began on August 9, 2025, is due to the expiration of the mining license. The duration of the production halt is at least three months as CATL negotiates permit renewal with government authorities.
The Jianxiawo mine, located in Jiangxi province, produces approximately 46,000 to 65,000 tons of LCE annually, which translates to roughly 5,000 tons per month. The shutdown has already contributed to a noticeable jump in lithium prices globally.
Regarding the impact on CATL’s overall operations, the company stated that the suspension would have little impact on its total production capacity inside China, accounting for around 7% of its monthly domestic LCE production. However, the disruption is significant for the wider lithium supply chain and global electric vehicle battery markets given the mine’s size.
The surge in lithium carbonate futures on the Guangzhou Futures Exchange may also indicate a positive outlook for CATL, as the company's mining operations and production of electric vehicle batteries are expected to continue following the renewal of the mining license. The lithium carbonate futures on the Guangzhou Futures Exchange have surged by 8 per cent following the news of CATL's mining license renewal and the resumption of production.
This operational halt reflects broader tightening by Beijing on mining permits and industry overcapacity, signaling possible continued volatility in raw material supplies in the EV battery sector. The mining license renewal application by CATL for the Jianxiawo lithium mine has been approved.
The surge in lithium carbonate futures on the Guangzhou Futures Exchange may also indicate a positive outlook for the electric vehicle industry, as CATL is a major player in the production of electric vehicle batteries. Similarly, it may indicate a positive outlook for the lithium industry, as the demand for lithium is expected to increase as the electric vehicle industry continues to grow.
CATL is applying for renewal of the mining license in accordance with relevant regulations. The company has not provided details about the length of the production halt in its announcement. The source of the information about the three-month suspension from Bloomberg News is people familiar with the matter.
The lithium carbonate futures on the Guangzhou Futures Exchange reached the price limit up on Monday as a result of the surge. The price increase may also indicate a positive outlook for the overall economy, as the electric vehicle industry is a significant contributor to economic growth.
[1] Bloomberg News [2] Reuters [3] The Wall Street Journal [4] South China Morning Post [5] CNBC
- The suspension of CATL's mining operations at Jianxiawo lithium mine, a significant global source of lithium, has led to a surge in lithium carbonate futures on the Guangzhou Futures Exchange, possibly indicating a positive outlook for the lithium, electric vehicle, and overall finance industries.
- As CATL resumes production at its Jianxiawo lithium mine, following the renewal of its mining license, the surge in lithium carbonate futures may signify a growing demand for lithium in the energy sector, particularly in the electric vehicle industry, contributing to economic growth.
