Executives at Contemporary Amperex Technology Co. Ltd. told employees in a meeting on Tuesday to prepare for a resumption at the Jianxiawo site and recall front-line workers, according to a person with direct knowledge of the matter, who asked not to be identified discussing private information. Battery giant CATL didn’t immediately respond to a request for comment.
The Jianxiawo mine in Yichun, a key Chinese lithium hub, has become a focal point for market sentiment. Its production halt due to an expired license stoked speculation that it was part of Beijing’s tougher stance on overcapacity and reflected a shift toward supply discipline. Days before Jianxiawo’s permit expired on August 9, traders flew drones over the site in the hope of gauging the state of operation.
Also Read: India to undertake Lithium exploration in Argentina, explore tie-ups in Australia for refining“This signals the Chinese government is not keen to disrupt the value chain,” said Cameron Hughes, a battery markets analyst at industry consultancy CRU Group, adding the earlier return may trigger a decline for lithium prices. “The ease of the renewal process is a very positive sign that we will not see similar disruptions for other lepidolite producers.”
Prices of lithium carbonate — a refined form of the material used in batteries — have seen heightened volatility over supply uncertainties. On Tuesday, news of CATL’s plans to resume output sent shares of major lithium producers tumbling.
“An earlier-than-expected restart of Jianxiawo can disrupt the theme of market rebalancing in the short term,” Jefferies analysts, including Shuhang Jiang, wrote in a note to clients. “We would not be surprised if China lithium stocks react negatively.”
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