Contemporary Amperex Technology Co. Ltd. (CATL) confirmed the suspension of its Jianxiawo lithium mine in Yichun, Jiangxi province—dubbed “Asia’s Lithium Capital”—on Monday, triggering a worldwide surge in lithium prices and mining stocks.
All lithium carbonate futures contracts opened at limit-up on Chinese exchanges. The most-active contract gained 8%, settling at 81,000 yuan per ton. Spot battery-grade lithium carbonate rose by 2,600 yuan to an average of 74,500 yuan per ton, a 3.62% single-day increase.
Hong Kong-listed Tianqi Lithium Corp. surged 19% while Ganfeng Lithium Group Co. jumped 21%. In US trading, Albemarle Corp. (NYSE: ALB) rose 15%, Piedmont Lithium gained 18%, Lithium Americas climbed 13%, and Chilean producer SQM advanced 12%. Australian miners also rallied sharply with Pilbara Minerals Ltd. (PLS) soaring 20%, Liontown Resources Ltd. leaping 25%, and Mineral Resources Ltd. increasing 14%.
The suspended Jianxiawo mine—China’s largest lepidolite resource—accounts for ~6% of global lithium output, per Bank of America. Combined with other Yichun mines (≥5% global share), the region contributes over 11% of worldwide supply.
Matty Zhao, co-head of China equity research at Bank of America, stated that lithium prices have substantial near-term upside. Regarding supply-demand dynamics, a Yichun lithium producer cautioned that while the suspension causes short-term impact, current market movements primarily reflect futures speculation.
SMM data showing China’s July 2025 lithium carbonate output exceeded 80,000 tons (+26% YoY). Eugene Hsiao, Macquarie Capital’s head of China equity strategy, emphasized that the key concern is whether this triggers broader regional supply constraints.
Citigroup analysts linked the shutdown to China’s “anti-involution” policy direction. Yichun authorities ordered 8 mining firms to submit reserve reports by end-September, auditing historical compliance issues. This signals stricter national oversight of strategic resources.
Citigroup noted the move could enhance China’s lithium pricing power long-term through compliance-driven supply rationalization.
