Ningde Times confirms that the suspension of production in the Jianxiawo lithium mining area in Yichun has led to a significant increase in lithium futures -August 9th , 2025

Ningde Times confirms that the suspension of production in the Jianxiawo lithium mining area in Yichun has led to a significant increase in lithium futures in August 9th ,2025

Ningde Times confirmed that a lithium mining area in Yichun has suspended mining due to the expiration of its mining license, triggering market 

expectations for a wider range of production cuts. China's lithium futures opened sharply, almost reaching the limit up.

According to Caixin News Agency, Chinese electric vehicle battery manufacturer CATL confirmed on Monday (August 11) that its mining qualification 

in the Jianxiawo mining area in Yichun, Jiangxi expired on Saturday (August 9) and has temporarily suspended mining operations. According to 

relevant legal requirements, an application for extension needs to be processed. However, other major mining areas in Yichun are still operating 

normally.

Ningde Times stated on the investor interaction platform that it will resume production as soon as possible after approval, which will have little 

impact on the overall operation of the company.

CATL is the world's largest automotive battery manufacturer, and its Jianxiawo mining area is an important source of China's lithium supply surge 

due to its large production capacity. Whether it will stop production after its mining license expires has always been a concern in the market.

Bloomberg reported on Sunday (10th) citing informed sources that the mining area has been shut down for at least three months. Given that 

Beijing is intensifying efforts to control overcapacity in various economic sectors, relevant reports have raised market expectations for a wider 

range of production cuts.

Therefore, after the opening on Monday, the prices of lithium in China and listed lithium companies in Australia both rose. Bloomberg quoted 

traders as saying that lithium prices on the Guangzhou Futures Exchange rose 8% at the opening, hitting the daily limit up, and the stock prices of 

Chinese listed lithium companies increased by 19%; The stock prices of Australian listed lithium companies soared by 25% at one point.

The market is currently concerned about whether other mining areas of SMIC Yichun in battery metal production will also be subject to mining

 restrictions. Previously, after discovering violations in the mineral registration and approval process during an audit by local government departments, eight lithium mining enterprises in Yichun have been required to complete the preparation of reserve verification reports by the end of September.

Analysis suggests that the temporary suspension of production in the Jianxiawo mining area has not yet changed the situation of overcapacity in

 the market. However, if the shutdown scope of other mines in Yichun expands after September 30th, lithium prices may further rise. The industry 

has been plagued by oversupply for over two years, and the temporary shutdown of this important link in the supply chain will be a major benefit.