GreenergyDaily

Aug. 11, 2025

Lithium prices and stocks spiked on Monday after battery giant Contemporary Amperex Technology Co. Ltd. halted operations at a major mine in China, spurring speculation that Beijing might move to suspend other projects as it tackles overcapacity across the economy, according to Bloomberg.

Tianqi Lithium Corp. jumped as much as 19% in Hong Kong, while Ganfeng Lithium Group Co. surged 21%, and Australian miners rallied, after CATL confirmed it had shut the mine in Jiangxi province. Prices of the battery metal on the Guangzhou Futures Exchange hit the daily limit and held firm throughout the day.

The fate of the CATL mine — the biggest in China's lithium hub of Yichun — had been under close scrutiny for weeks, amid speculation that authorities wouldn't extend its license. The mine accounts for some 6% of global output, according to Bank of America Corp., while other mines in the region account for at least another 5%.

The most-active lithium carbonate futures contract on the Guangzhou Futures Exchange jumped by the daily limit of 8% on Monday, according to the exchange website. The contract due in November traded at 81,000 yuan a ton, up from a settlement of 75,000 yuan on Friday.

CATL, the world's biggest battery producer, confirmed the closure of its Jianxiawo mine on Monday morning, saying it's seeking to renew its expired permit without giving more details. The operation will be shut for at least three months, people familiar with the matter told Bloomberg News at the weekend, after its mining license expired on Aug. 9.

The Chinese company said the stoppage would have little impact on its overall operations, and its shares rose as much as 2.8% in Hong Kong.