CATL Resumes Lithium Mining and Refining Operations in Jiangxi Province

Chinese battery giant CATL (300750.SZ) has resumed operations at its lithium lepidolite mine and refinery in Jiangxi province, according to a spokesperson from its joint venture partner Lopal Tech (603906.SS). This restart is attributed to CATL’s success in reducing production costs at both facilities.

Currently, the operation is producing over 2,000 tons of lithium carbonate per month, with plans to ramp up production to more than 3,000 tons per month as the operation progresses.

Reports emerged last week from UBS, confirming that the mine had resumed production. However, CATL did not respond to Reuters’ request for comment.

CATL’s mine in Jiangxi has been a key contributor to China’s rapidly expanding lithium supplies, which are essential for the production of batteries. The news of its closure in September had previously caused a surge in lithium stocks. The resumption of the mine has had an immediate impact on the market, as lithium miner shares in Australia experienced a drop on Tuesday.

In response to the news, the most-traded November lithium carbonate futures contract on the Guangzhou Futures Exchange closed at 77,300 yuan ($10,578) per metric ton, reflecting a 1.6% drop from the previous day. CATL’s share price on the Shenzhen Stock Exchange also saw a decline of 2.6%, closing at 251.8 yuan.