China resumes lithium mining and refining operations in Jiangxi province, led by CATL.
In a significant move to bolster China's lithium supply chain security, Chinese battery giant CATL has reopened its lithium lepidolite mine in Jiangxi province [1]. This decision is part of China's broader strategy to secure lithium supply domestically, reducing its reliance on foreign sources, particularly from Africa and Australia [1].
The mine's reopening, reported by Reuters on Friday, follows a closure in September that caused lithium stocks to rally sharply [2]. CATL's mine in Jiangxi is a significant contributor to China's rapidly growing lithium supplies and could potentially impact the shares of lithium miners in Australia and other parts of the world.
The mine's partner in refining, Lopal Tech, is a joint venture with CATL. The resumption of operations at CATL's mine and refinery could potentially affect the partnership between the two companies, as well as the overall battery market, given CATL's significant role in China's lithium industry.
The restart of CATL's mine and refinery is expected to increase production to exceed 3,000 tons of lithium carbonate per month [1]. This move aligns with Beijing's long-term lithium security push to secure hard-rock lithium feedstock directly [1]. The plan aims to support China’s strategic goal of reducing reliance on foreign lithium sources, despite those remaining vital to overall supply [1].
The November lithium carbonate futures contract on the Guangzhou Futures Exchange closed at 77,300 yuan ($10,578) per metric ton on Tuesday, a 1.6% decrease from Monday's close [3]. The resumption of operations at CATL's mine and refinery could potentially affect the price of lithium carbonate in the market.
CATL's share price on the Shenzhen Stock Exchange closed at 251.8 yuan on Tuesday, a 2.6% decrease from Monday [3]. The restart of the mine and refinery is due to reduced production costs, which could positively impact CATL's financial performance in the long run.
This move reflects CATL and China's broader push for self-sufficiency and diversification in lithium resources amid heightened global competition. The reopening of the Jiangxi mine and refinery is a significant step towards China's goal of securing its lithium supply, essential for the production of batteries and electric vehicles, amid increasing global demand.
Sources: [1] Reuters, "China's CATL reopens Jiangxi lithium mine to boost domestic supply," 2025. [2] Reuters, "China's CATL to reopen Jiangxi lithium mine," 2025. [3] Reuters, "CATL shares fall after Jiangxi lithium mine reopening," 2025.
- The reopening of CATL's lithium mine in Jiangxi, a move aimed at bolstering China's domestic lithium supply, could potentially disrupt the shares of lithium miners in the finance sector, particularly those based in Australia and other parts of the world, given the mine's significant contribution to China's rapidly growing lithium supplies.
- The resumption of operations at CATL's lithium mine and refinery could potentially impact the energy sector, as the increased production is expected to exceed 3,000 tons of lithium carbonate per month, aligning with Beijing's long-term strategy to secure hard-rock lithium feedstock directly and reduce reliance on foreign sources, which remain vital to the overall supply.
