BRIEF: CATL to resume production at Jiangxi lithium mine, faster than expected

Lithium battery giant CATL (3750.HK; 300750.SZ) is preparing to restart operations at its Jianxiawo lithium mine in Jiangxi province’s Yichun, after a one-month suspension. The mine halted production on Aug. 10 after its mining permit expired, pushing China’s lithium carbonate prices up 24% in just 10 days.

CATL’s Yichun Shidai New Energy Mining subsidiary held a meeting on Tuesday, where it revealed that the process for renewing mining rights and permits is progressing smoothly. A source noted that the timeline for resumption of operations is “faster than even the most optimistic market expectations,” according to a report on CnEVPost.

Following the suspension, prices for battery-grade lithium carbonate in China surged from 70,000 yuan ($9,823) per ton to 86,500 yuan, reflecting supply concerns. Although prices have since eased to around 75,000 yuan per ton, the volatility highlights lithium’s critical role in the cost of new energy vehicles. Lithium carbonate and iron phosphate are the primary raw materials used to make lithium iron phosphate (LFP) batteries, which make up a significant portion of electric vehicle costs.

CATL’s stock opened higher on Wednesday in Hong Kong, closing at HK$432.8 by midday break, up 0.42%.

By Lee Shih Ta

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