CATL aims to restart key lithium mine in early Dec, report says
CATL plans to restart its Jianxiawo lithium mine in Yichun by early December after suspending production in August due to an expired mining permit. The company has asked suppliers and partners to prepare for the restart, though regulatory approval is still pending. Lithium prices have been volatile, with significant fluctuations in recent days. CATL's fifth-generation LFP batteries have achieved new breakthroughs in energy density and cycle life.
- CATL has drawn up a preliminary plan to restart its Jianxiawo lithium mine in Yichun by early December, Bloomberg reported.
- CATL suspended production at the Jianxiawo lithium mine on August 10 due to the expiration of a key mining permit, which had triggered a surge in lithium prices.
CATL (HKG: 3750, SHE: 300750) reportedly aims to restart a key lithium mine early next month following recent rollercoaster price movements for lithium carbonate in China.
The battery giant has formulated a preliminary plan to restart its Jianxiawo lithium mine in Yichun by early December, Bloomberg reported today, citing sources.
CATL has asked suppliers and partners to prepare equipment, chemicals, and workers, and has notified refineries that extract raw materials from the mine, the sources said.
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The company's preparations do not guarantee regulatory approval for the mine, Bloomberg noted. CATL's plans may change and are still awaiting final approval from authorities, the sources said.
CATL suspended production at the Jianxiawo lithium mine on August 10 due to the expiration of a key mining license, which briefly caused a surge in lithium carbonate prices.
CATL said at the time that it was actively processing the application to extend the mining license.
On September 30, Bloomberg reported that CATL's Jianxiawo mine had received reserve approval, bringing it closer to obtaining a mining license and resuming production.
Earlier this month, CATL was notified of the mining rights fees it must pay, a crucial step toward restarting operations at the lithium mine.
Lithium is one of the key raw materials for batteries, which typically account for a significant portion of the cost in an electric vehicle (EV) model.
Lithium carbonate and iron phosphate are the primary raw materials for lithium iron phosphate (LFP). Yichun, located in Jiangxi province, is a lithium production hub often referred to as the "Lithium Capital of Asia."
Lithium carbonate prices have experienced significant volatility in China in recent days.
On November 19, the most actively traded lithium carbonate contract on the Guangzhou Futures Exchange briefly surged above RMB 100,000 ($14,060) per ton, hitting its highest level since June 2024.
Today, the most active lithium carbonate futures contract fell by the daily limit of 9 percent, closing at RMB 91,020 per ton.
CATL has started mass production of its 5th-gen LFP batteries
CATL's fifth-generation LFP batteries have achieved new breakthroughs in energy density and cycle life, according to its chairman Robin Zeng.
($1 = RMB 7.1103)
