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CATL Reportedly Plans to Restart Key Chinese Lithium Mine by December
Nov. 24, 2025 09:30AM PST
Operations at the mine were suspended in August, disrupting roughly 6 percent of global lithium output and contributing to recent price swings in the battery metal.
Dmitry Demidovich / Shutterstock
Contemporary Amperex Technology (SZSE:300750,OTC Pink:CTATF) is preparing to restart its Jianxiawo lithium mine in Jiangxi province as soon as early December, sources familiar with the matter told Bloomberg.
The sources, who declined to be named, said the company, better known as CATL, has asked suppliers and partners to ready equipment, chemicals and workers, and has notified refiners that rely on feedstock from the mine.
However, the firm is still awaiting regulatory approval, and the timeline could shift depending on when it comes.
Located in Yichun, the Jianxiawo mine produces approximately 65,000 metric tons of lithium carbonate equivalent annually. Its shutdown on August 9 followed the expiration of a critical permit, which CATL sought to extend.
The operation's suspension is being viewed as one of the most impactful disruptions to global lithium supply in recent years, coming amid tighter government scrutiny of the sector.
Lithium prices have been volatile in recent months owing to both oversupply and renewed optimism from the energy storage sector. The most-active lithium carbonate contract on the Guangzhou Futures Exchange rose over 10 percent this month, surpassing 100,000 yuan per metric ton earlier this week.
Bullish sentiment in China’s lithium market has been further reinforced by recent comments from Ganfeng Lithium (OTC Pink:GNENF,HKEX:1772) Chair Li Liangbin, who forecast earlier this month that lithium carbonate prices could reach 200,000 yuan next year if demand grows more than 30 percent.
Lithium market still defined by oversupply
Global lithium supply has outpaced demand in recent years due to slower-than-expected electric vehicle adoption, creating a glut that has put downward pressure on prices for the battery metal. However, the market is currently seeing a rebound as investors and manufacturers anticipate growth in battery storage applications.
China dominates the global lithium market, both in mining and refining. The Asian nation accounts for roughly 85 percent of global lithium processing, giving Chinese producers significant influence over global prices.
While the CATL mine disruption has taken some supply offline, analysts increasingly warn that without significant project delays, cancelations or an unexpected surge in demand, the imbalance could persist into the next decade.
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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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