CATL Set to Restart Major Lithium Mine in China by December

UPDATE: Contemporary Amperex Technology Co. Ltd. (CATL) is preparing to reopen its crucial Jianxiawo lithium mine in China as early as December 1, according to insider sources. This development comes after the mine was shut down in August due to a permit issue, which has since fueled uncertainty in the lithium market.

The reopening plan is significant, as the Jianxiawo mine is expected to contribute approximately 3% of global lithium production. CATL has begun mobilizing suppliers and partners to ready equipment, chemicals, and workforce, indicating a serious commitment to restart operations. However, regulatory approval remains a pending hurdle, which could alter the timeline.

Insiders report that CATL has already received instructions on the mining rights fees, a critical step that aligns with the company’s efforts to resume production. The demand for lithium is experiencing volatility, with prices recently soaring over 10% on the Guangzhou Futures Exchange, hitting $14,000 per ton. This surge reflects a growing confidence in lithium demand from the energy storage sector, despite a broader industry glut due to a slowdown in electric vehicle (EV) sales.

The situation is increasingly pressing, as CATL’s preparations signal a potential shift in the market landscape. The company’s plans to restart production come at a time when heightened government scrutiny in the sector is influencing price dynamics. Earlier this month, predictions from Ganfeng Lithium Group Co. suggested that prices could escalate to 200,000 yuan next year if demand rises by more than 30%.

As CATL awaits final regulatory approval, industry stakeholders are closely monitoring the situation, knowing that any delays could impact not just the company but the entire lithium supply chain. The outcome of this endeavor is critical, not only for CATL but also for the global electric vehicle market, which relies heavily on lithium for battery production.

In the coming weeks, attention will turn to the regulatory decisions that will determine the fate of the Jianxiawo mine. With the electric vehicle industry on the line, the urgency surrounding this reopening cannot be overstated. Stay tuned for further updates as CATL navigates this pivotal moment in lithium production.