CATL announced mining operations at the Jianxiawo lithium mine project in Yichun, China, have been suspended. The company is now expediting the license renewal application in compliance with relevant regulations and will resume production at the earliest opportunity upon approval.

The expiration of CATL's mining license for the Jianxiawo mine has led to production being suspended at the operation.

Jianxiawo is one of eight local lithium mine operators that have recently been requested by the Natural Resources Bureau of Yichun City, Jiangxi Province to submit resource reserve verification reports because of discrepancies between their licensed mining rights and actual extracted minerals.

If CATL applies for a new mining license under the updated regulatory requirements, the application cycle is expected to be prolonged, making it highly challenging to complete all procedures and maintain production at the site.

From a single-mine perspective, the Jianxiawo mine is China’s largest lepidolite lithium extraction project, with an annual capacity of 100ktpy LCE, accounting for one-third of Jiangxi’s total lepidolite capacity and one-tenth of China’s domestic lithium mining capacity.

This suspension will directly reduce lithium carbonate supply capacity in Jiangxi and across China, while intensifying market concerns about supply stability at other lithium mines.

Represented by the other seven lepidolite mining operators that received regulatory notices requiring re-preparation of reserve verification reports, if these companies fail to complete mine reserve verification by 30 September, or if inconsistencies between extracted minerals and licensed categories are identified during the license reapplication process, these producers face significant closure risks.

The closure of multiple Jiangxi based operations would have a significant impact on China's domestic lithium mineral concentrate supply, and ultimately impact lithium carbonate production. Lithium carbonate prices would likely experience upward volatility in the eventuality of multiple closures, increasing costs for downstream consumers.

Since 2023, China's lithium carbonate market has remained in overcapacity and domestic lithium carbonate prices have fallen back notably during 2024 and 2025. The Jianxiawo suspension and recent suspension at Zangge Lithium’s brine operation demonstrate China’s intensifying regulatory oversight over lithium resources, particularly targeting reducing "involuted" competition.

Consolidating the domestic industry across multiple industries is intended to guide companies to enhance product quality and facilitating the orderly phase-out of obsolete capacity.