CATL has officially resumed production at its Jianxiawo lithium mine in Yichun, Jiangxi, after obtaining the final regulatory approval required for operations, according to Securities Daily and Economic Information Daily. The restart returns one of China’s largest lithium sources to production and is expected to increase supply in an already oversupplied lithium market.
Production Resumes After Final Approval
The company received the mine’s safety production permit on June 29, clearing the final regulatory requirement before operations could restart.
According to Securities Daily, citing unnamed sources, production officially resumed on the evening of June 29.
The Jianxiawo mine is one of the world’s largest single lepidolite lithium deposits, with annual lithium carbonate production capacity of about 100,000 tonnes.
Before production was suspended in 2025, the mine accounted for approximately 8% to 10% of China’s lithium carbonate output, making its return significant for the domestic battery materials market.
Additional Supply Expected
Mysteel lithium carbonate analyst Li Pan expects the mine to contribute more than 45,000 tonnes of additional lithium carbonate production during the second half of the year, assuming operations continue from July.
The restart has been closely monitored by both commodity traders and equity investors because of its potential impact on lithium prices.
China’s lithium carbonate futures rose sharply on June 30, with the main contract closing at 163,360 yuan (approximately US$24,100) per tonne, up 8.36% from the previous session.
Li said the market had anticipated the restart would take longer, although the eventual resumption broadly aligned with industry expectations.
Price Outlook Remains Cautious
Despite stronger downstream battery production forecasts, analysts believe abundant inventories and additional supply will continue to limit further price gains.
Li expects lithium carbonate prices in China to trade between 150,000 yuan and 200,000 yuan per tonne during the second half of the year.
Mine Returns After Nearly One-Year Suspension
CATL halted production at the Jianxiawo mine on August 10, 2025, after its mining permit expired the previous day.
Since then, the company has completed a series of regulatory approvals, including reserve report approval and payment of mining rights fees before securing the final safety production permit.
Earlier signs of the restart included safety training for mine workers and the arrival of electric mining trucks at the site.
Yichun, located in Jiangxi Province, is one of China’s most important lithium production centers and is widely known as Asia’s lithium capital.
CATL remains the world’s largest electric vehicle battery manufacturer, holding a 40.1% global market share during the first four months of the year, according to SNE Research.