A major lithium mine operated by Contemporary Amperex Technology Co Ltd (CATL) is expected to resume operations soon after a month-long suspension that helped push up lithium prices, Securities Times reported on Monday.
A CATL subsidiary in Yichun, Jiangxi province, held a special meeting on the restart of the Jianxiawo mine, according to the Securities Times. The company is advancing applications for mining rights and operating permits, with production likely to resume shortly, the report said, citing a source.
“This is faster than even the most optimistic market expectations,” the source was quoted as saying.
The mine ceased output on Aug. 10 after its permit expired the day before. CATL said at the time that it was actively working on the renewal process. The suspension coincided with Beijing’s wider scrutiny of mining activities as part of a campaign to address overcapacity in several industries.
Following the shutdown, battery-grade lithium carbonate prices in China jumped 24% in just over a week, climbing from about 70,000 yuan ($9,830) per ton on Aug. 8 to 86,500 yuan on Aug. 18, data from CnEVPost showed. Prices have since eased to around 75,000 yuan per ton, still far below the record 590,000 yuan reached in November 2022.
Lithium is a critical raw material for electric vehicle batteries, particularly lithium iron phosphate (LFP) cells, where carbonate and iron phosphate are the main inputs.