Key Takeaways
- Contemporary Amperex Technology Co. Ltd. (CATL) has suspended operations at its Jianxiawo lithium mine in China, a facility responsible for an estimated 3% to 6% of global lithium output.
- The suspension, initiated due to an expired mining license, is anticipated to last for at least three months, causing a significant spike in lithium prices and boosting shares of rival lithium producers globally.
- Despite the halt at a crucial resource, CATL ((/stock/300750)), the world's largest electric vehicle battery manufacturer, asserts that the shutdown will have "little impact" on its overall battery production operations.
Chinese electric vehicle (EV) battery behemoth Contemporary Amperex Technology Co. Ltd. (CATL) ((/stock/300750)) has temporarily ceased operations at its key Jianxiawo lithium mine in Jiangxi province. The suspension, effective as of August 11, 2025, is primarily due to the expiration of the mine's operating license.
The Jianxiawo mine is a significant contributor to the global lithium supply, accounting for approximately 3% to 6% of the world's mined output. Reports indicate that the facility could remain shut for at least three months as CATL processes its application for license renewal.
The news immediately impacted the volatile lithium market. Prices of lithium carbonate futures surged by the daily 8% limit on the Guangzhou Futures Exchange, reflecting concerns over tighter supply. Shares of other major lithium producers, including Tianqi Lithium and Ganfeng Lithium Group, saw significant rallies in Hong Kong, while Australian miners also experienced gains.
The halt comes at a critical time for the lithium industry, which has faced a supply glut for over two years. Beijing's increasing scrutiny of mining operations and efforts to address overcapacity across various sectors are also contributing factors to such suspensions. While the pause in output from a key supply chain link could be a boon for an oversupplied market, CATL maintains that the suspension will have minimal effect on its broader battery manufacturing activities.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.