CATL Photo: VCG

Chinese electric battery giant Contemporary Amperex Technology (CATL) announced on its interactive investor platform on Monday that it has temporarily suspended mining operations at its Yichun project in East China's Jiangxi Province.  

The suspension follows the expiration of the mining license on August 9. CATL is in the process of applying for a renewal of the mining permit in accordance with relevant regulations and aims to resume production as soon as a new approval is obtained, the company said. 

The company added that this matter will have a minimal impact on its overall operations.

CATL has held the mining rights for the Jianxiawo lithium mining area in Yichun, Jiangxi, since August 9, 2022, but the rights expired on August 9, 2025. Given the site's substantial production capacity, the halt in operations has drawn significant market attention, the Securities Times reported.

The Jianxiawo mine, one of Yichun's largest lithium mica deposits, holds 774.92 million tons of recoverable lithium reserve with a service life of 25.83 years at an annual output of 30 million tons. Analysts estimate it could produce 200,000 tons of lithium carbonate per year, making its operational status a critical factor for market sentiment, according to the Securities Times.

China's lithium futures experienced sharp gains on Monday morning following CATL's official announcement. All listed lithium carbonate futures contracts hit their daily limit-up levels, collectively returning to more than 80,000 yuan ($11,137) per ton with a gain of 8 percent.

In the equity market, related A-share and H-share lithium stocks rallied. In Monday morning trading, A-share companies, including Chengxin Lithium Group Co, Jiangxi Special Electric Motor Co, and Tianqi Lithium Corp, locked in daily limit-up gains. Hong Kong-listed Ganfeng Lithium Group Co surged more than 20 percent and Tianqi Lithium Corp jumped more than 16 percent.

Lithium, a key component of lithium-ion batteries, is considered essential for electric vehicles and renewable energy storage systems, both crucial for transitioning to a clean energy economy.

Global Times