BUSINESS

Lithium Prices Jump as CATL Shuts Yichun Mine Over Expired Permit

Published: Aug. 12, 2025 4:41 a.m. GMT+8

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CATL teamed up with Yichun in September 2021, investing 13.5 billion yuan to build a lithium battery base.

A halt in production at a lithium mine run by battery giant Contemporary Amperex Technology Co. Ltd. (CATL) has jolted markets, lifting lithium futures and the share price of producers amid fears of supply disruptions.

CATL — the world’s largest maker of batteries for electric vehicles (EVs) and energy-storage systems — said on Monday it had suspended mining in Yichun, Jiangxi province, after its permit expired on Aug. 9. The company is applying to have it renewed and will restart operations once approved, adding that the pause will not significantly affect its overall business.

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CATL suspended mining at its Yichun lithium mine after its permit expired, causing lithium futures to jump to 81,000 yuan/ton, the highest this year, and shares of major miners to surge by 10%.
China produced about 700,000 tons of lithium carbonate in 2024, a 35% increase from 2023, but oversupply and regulatory actions have pressured prices and mining operations.
Authorities are tightening oversight of the lithium sector to address oversupply and eliminate low-price competition.

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Who’s Who

Contemporary Ampere Technology Co. Ltd. (CATL): CATL is the world's largest maker of batteries for electric vehicles (EVs) and energy-storage systems. They are a major player in the lithium market, owning a significant mining and processing operation in Yichun, China's "lithium capital." Recently, CATL halted mining operations in Yichun due to an expired permit, causing market jitters and a rise in lithium prices.

Chengxin Lithium Group Co. Ltd.: Chengxin Lithium Group Co. Ltd. is a leading lithium miner whose shares jumped by the daily 10% limit following a production halt at a CATL-run lithium mine. This market reaction was driven by fears of supply disruptions and rising lithium carbonate futures.

Jiangxi Special Electric Motor Co. Ltd.: Jiangxi Special Electric Motor Co. Ltd. is a leading lithium miner whose shares jumped by the daily 10% limit after CATL suspended mining operations. A subsidiary of the company also announced a 26-day maintenance shutdown of all its lithium salt production lines in late July.

Tianqi Lithium Corp.: Tianqi Lithium Corp. is one of the leading lithium miners mentioned in the article. Its shares jumped by the daily 10% limit following the news of a production halt at a lithium mine run by CATL. This surge in share price was driven by fears of supply disruptions in the lithium market.

Zangge Mining Co. Ltd.: Zangge Mining Co. Ltd. is a Chinese lithium mining company. In mid-July, one of its lithium mining units was ordered to halt production due to illegal mining activities. This occurred amid broader efforts by Chinese authorities to stabilize the lithium market.

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What Happened When

September 2021：: CATL teamed up with Yichun, investing 13.5 billion yuan to build a lithium battery base.

April 2022：: CATL bought exploration rights to a local ceramic clay mine for 865 million yuan, with a permit valid through Aug. 9, 2025.

End of 2022：: Lithium prices hit a historic high of 600,000 yuan a ton.

Since 2023：: A wave of new lithium projects came online globally, contributing to an oversupply.

2023：: China's lithium carbonate output was the baseline for a 35.35% increase in 2024.

Mid-2024：: CATL’s lithium mica mine began production.

2024：: China produced around 700,000 tons of lithium carbonate, up 35.35% from 2023.

September 2024：: CATL’s lithium mica mine closed briefly due to weak prices.

By End of 2024：: CATL’s mica mine produced over 10,000 tons, below capacity.

July 1, 2025：: Central Financial and Economic Affairs Commission called for ending low-price competition and phasing out outdated capacity.

July 14, 2025：: Yichun authorities issued a notice requiring CATL and others to submit reserve verification reports.

Mid-July 2025：: A lithium mining unit of Zangge Mining Co. Ltd. was ordered to halt production for illegal mining.

July 18, 2025：: Ministry of Industry and Information Technology said it would unveil measures to boost key industries, including nonferrous metals.

July 25, 2025：: A subsidiary of Jiangxi Special Electric Motor Co. Ltd. announced a 26-day maintenance shutdown of all its lithium salt production lines.

July 30, 2025：: CATL executives stated in an earnings call they had applied for renewal of their mining permit and were optimistic about approval.