CATL confirms production halt at Yichun lithium mine, sending lithium producers' shares soaring
Tianqi Lithium rose nearly 11 percent in Hong Kong, while China's most active lithium carbonate futures rose by the daily limit of 8 percent.
- Tianqi Lithium rose nearly 11 percent in Hong Kong, while China's most actively traded lithium carbonate futures rose by the daily limit of 8 percent.
- CATL's mining permit for the Jianxiawo mine has expired, while production at other lithium mines in Yichun is proceeding normally.
CATL (SHE: 300750) confirmed it has suspended production at a large lithium mine, sending lithium producers and lithium carbonate prices soaring.
The company has suspended operations at a project in Yichun, Jiangxi province, after the mining permit for the project expired on August 9, CATL said today on a stock information disclosure platform.
CATL is expediting the application for an extension of the mining permit and will resume production as soon as possible upon approval, it said, adding that the matter will have a negligible impact on the company's overall operations.
Separately, local media outlet Cailian reported today, citing informed sources, that CATL's mining permit for the Jianxiawo mine has expired, while production at other lithium mines in Yichun is proceeding normally.
Bloomberg reported yesterday that CATL had suspended lithium production at Jianxiawo, stating that the suspension would last for at least three months.
The company is still in talks with government agencies regarding the renewal of the license but is prepared to extend the suspension period by several months, Bloomberg cited a source familiar with the matter as saying.
This is seen as a good news for China's lithium industry, which has been under prolonged price pressure.
As of press time, China's most active lithium carbonate futures rose by the daily limit of 8 percent to RMB 81,000 ($11,280) per ton.
Shares of lithium producers traded in Hong Kong surged, with Tianqi Lithium (HKG: 9696) rising nearly 11 percent. CATL rose slightly by 1.5 percent in Hong Kong.
Spot prices for lithium carbonate in China are currently around RMB 70,000 per ton.
In 2022, as China's EV industry rapidly developed, lithium prices saw a wild rise in China.
In November 2022, the price of battery-grade lithium carbonate rose to RMB 590,000 per ton, an increase of about 14 times from RMB 41,000 per ton in June 2020.
($1 = RMB 7.1832)
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