CATL suspends domestic lithium mine production for three months August 11, 2025
Aug,11,25
CATL suspends domestic lithium mine production for three months(August 11, 2025 )
On August 10, 2025, China Lithium Products Techonlogy Co., Ltd - According to informed sources, battery giant Contemporary Amperex Technology Co. Ltd. has suspended production at a large lithium mine in Jiangxi Province for at least three months.
They stated that the world's largest electric vehicle battery manufacturer has announced internally that the Jianxiawo lithium mine will temporarily cease operations. One of the insiders said that the reason for the shutdown was that the company failed to extend a key mining license, which expired on August 9th.
In recent weeks, the lithium industry has been impacted by severe fluctuations in the spot, futures, and stock markets, while Jianxiawo Mining has attracted much attention due to license renewal issues. Last week, traders used drones to survey the mine - which is expected to account for around 3% of global lithium production - in hopes of assessing its current production status.
Another informed source revealed that the affiliated refinery in nearby Yichun City has received a notice to cease production. The first informed source added that the company is still in negotiations with government departments to obtain license renewal, but is prepared to shut down production for several months. Due to unauthorized public statements, these informed individuals requested anonymity.
The license issue and production suspension of CATL come at a time when the government is cracking down on overcapacity in multiple industries and strengthening supervision of mining operations. However, for an industry that has been plagued by overcapacity for over two years, the shutdown of this important link in the supply chain may bring benefits.
In 2024, CATL's battery mineral resources business revenue plummeted by 29%, highlighting the challenges faced by this Chinese company in upstream investment, including a sharp drop in lithium prices. These investments were originally intended to ensure supply and control costs, for which CATL actively acquired mining equity and even expanded overseas.
In July, the price of the most active lithium carbonate futures contract on the Guangzhou Futures Exchange once exceeded 80000 yuan (approximately 111.28 US dollars), and then the exchange took measures to curb speculative trading. Last week, the price of this material increased by about 9% and closed at 75000 yuan on Friday.