CATL Shuts Down China Lithium Mine For 3 Months

Battery giant Contemporary Amperex Technology Co. Ltd. (CATL) has suspended production at a major lithium mine in China’s Jiangxi province for at least three months, according to people familiar with the matter, Annie Lee and Alfred Cang reported for Bloomberg News.

CATL’s revenue from its battery mineral resources business fell 29% in 2024. (Photo: CATL)

CATL, the world’s largest manufacturer of electric-vehicle batteries, has announced internally that the Jianxiawo mine would temporarily halt operations, sources said.

One of them added that the suspension followed the company’s failure to extend a key mining permit, which expired on Aug. 9.

The lithium industry has faced extreme volatility in spot, futures, and equity markets in recent weeks, with the Jianxiawo mine drawing particular focus due to questions over its permit renewal.

Last week, traders flew drones over the mine — which is forecast to account for about 3% of global mined production — in an attempt to gauge current output levels.

A source said affiliated refineries in nearby Yichun had been notified of the closure.

The first source also noted the company is still in talks with government agencies to secure a renewal but is preparing for the halt to last several months.

CATL’s permit trouble and suspension come as Beijing cracks down on overcapacity in multiple industries and increases scrutiny of mining operations.

For an industry plagued by a supply glut for more than two years, however, the pause in output from a significant link in the supply chain could prove beneficial.

CATL’s revenue from its battery mineral resources business fell 29% in 2024, underscoring the challenges facing the company’s upstream investments, including a steep decline in lithium prices.