CATL Pauses Yichun Mining Operations Pending License Renewal

Published on Aug 11, 2025.
CATL Pauses Yichun Mining Operations Pending License Renewal

Contemporary Amperex Technology Co. Ltd. (CATL), a leading global electric battery manufacturer, has announced a temporary suspension of its lithium mining operations at the Yichun project located in Jiangxi province, East China. This decision follows the expiration of its mining license on August 9, and the company is in the process of renewing the necessary permits.

According to CATL, the halt in mining operations is in compliance with relevant regulations, and it aims to resume production promptly upon obtaining the requisite approvals. The firm reassured stakeholders that this situation would have a minimal impact on its overall operational capacity.

The announcement of the production suspension has sent ripples through the market, particularly affecting China's lithium futures. Following CATL's notification, prices for lithium futures surged on Monday morning, with all listed lithium carbonate contracts reaching their daily price limits, collectively exceeding 80,000 yuan per ton and reflecting an 8 percent increase.

In addition to the futures market fluctuations, the suspension has also stirred activity within the equity markets. Shares of related companies in both A and H share markets have experienced significant gains, with several A-share companies such as Chengxin Lithium Group Co., Jiangxi Special Electric Motor Co., and Tianqi Lithium Corp achieving daily limit-up spikes.

Notably, Hong Kong-listed Ganfeng Lithium Group Co. saw its shares soar by over 20 percent, while Tianqi Lithium Corporation recorded a remarkable jump exceeding 16 percent. These movements demonstrate how closely tied the stock performance of lithium firms is to developments within CATL's mining operations.

CATL has held the mining rights for the Jianxiawo lithium mining area since August 9, 2022, with the contract set to expire on August 9, 2025. This location is crucial, given its considerable production capacity and the mining stoppage has sparked heightened market interest, as highlighted by sources from the Securities Times.

The Jianxiawo mine, recognized as one of the largest lithium mica deposits in Yichun, boasts approximately 774.92 million tons of recoverable lithium reserves. The site has an anticipated operational lifespan of nearly 26 years, based on an annual output of 30 million tons.

Analysts estimate that the mine could ultimately produce around 200,000 tons of lithium carbonate each year. This substantial output underscores the importance of the mining area’s operational status as a critical factor influencing market sentiment, echoing insights provided by various industry analysts.

ECONOMYINDUSTRY

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