CATL’s lithium mine in Yichun, Jiangxi province, which had been suspended for a month, is reportedly gearing up to resume operations soon. This news comes after a surge in lithium prices following the production halt on August 10. According to reports, a CATL subsidiary in Yichun held a special meeting to discuss the restart of the Jianxiawo lithium mine. The company is said to be making progress in obtaining the necessary mining rights certificates and permits, with operations expected to resume in the near future.
An official source cited in the report mentioned that the mine’s resumption is happening faster than the market’s most optimistic expectations. This development comes after the mine stopped production due to the expiration of its mining permit on August 9. CATL had been actively working on renewing the permit before the shutdown.
The suspension of the lithium mine led to a significant increase in lithium carbonate prices in China. Battery-grade lithium carbonate prices surged by 24 percent from around RMB 70,000 per ton on August 8 to RMB 86,500 per ton on August 18. This spike in prices reflects the critical role of lithium as a key raw material for batteries, particularly in electric vehicles (EVs).
The timing of CATL’s mine shutdown coincides with the Chinese government’s crackdown on overcapacity in various industries and increased scrutiny of mining activities. In recent years, lithium prices in China have experienced drastic fluctuations, with a peak of RMB 590,000 per ton for battery-grade carbonate in November 2022. However, prices have since declined, with battery-grade carbonate currently trading around RMB 75,000 per ton.
The resumption of operations at CATL’s lithium mine is a significant development in the industry, especially given the impact on lithium prices and the supply chain for EV batteries. As the market awaits further updates on the mine’s restart, stakeholders will be closely monitoring the situation to assess the implications for the broader EV ecosystem.
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