Contemporary Amperex Technology Co Ltd (CATL) has confirmed it has suspended production at a large lithium project in Yichun, Jiangxi province, after its mining permit expired on August 9.
The company disclosed the halt on a stock market information platform, saying it is expediting the application for a permit extension and expects to resume production once approval is granted. CATL indicated the suspension is not expected to have a significant effect on its overall operations.
According to media reports, the expired permit applies to the Jianxiawo mine, while production at other lithium mines in Yichun remains unaffected. Bloomberg reported the halt could last at least three months, with the possibility of an extended suspension depending on licensing progress.
The development boosted sentiment in China’s lithium market, which has been under prolonged price pressure. Lithium carbonate futures in China rose 8% to 81,000 yuan ($11,280) per ton, the daily limit. Hong Kong-listed lithium producers saw sharp gains, with Tianqi Lithium rising nearly 11% and CATL up 1.5%.
Spot prices for lithium carbonate in China are currently around 70,000 yuan per ton, well below the peak of 590,000 yuan in November 2022 during the height of the country’s electric vehicle boom. Prices had risen more than fourteen-fold between mid-2020 and late 2022 before declining in recent months.