Contemporary Amperex Technology (SZSE:300750,OTC Pink:CTATF) is preparing to restart its Jianxiawo lithium mine in Jiangxi province as soon as early December, industry sources familiar with the matter told Bloomberg.
The sources, who declined to be named, said CATL has asked suppliers and partners to ready equipment, chemicals, and workers, and has notified refiners that rely on feedstock from the mine.
However, the company is still awaiting regulatory approval, and the timeline could shift depending on government sign-off.
Located in Yichun, the Jianxiawo mine produces approximately 65,000 tons of lithium carbonate equivalent annually. Its shutdown on August 9 followed the expiration of a critical permit, which CATL sought to extend.
The suspension is viewed as one of the most impactful disruptions to global lithium supply in recent years, coming amid tighter government scrutiny of the sector.
Lithium prices have been volatile in recent months owing to both oversupply and renewed optimism from the energy storage sector. The most-active lithium carbonate contract on the Guangzhou Futures Exchange rose over 10 percent this month, surpassing 100,000 yuan (US$14,000) a ton earlier this week.
Bullish sentiment in China’s lithium market was further reinforced by recent comments from Ganfeng Lithium (OTC Pink:GNENF,HKEX:1772) Chairman Li Liangbin, who forecasted that lithium carbonate prices could reach 200,000 yuan per ton next year if demand grows more than 30 percent.
Lithium market still defined by oversupply
Global supply has outpaced demand in recent months due to slower EV adoption, creating a glut that has put downward pressure on prices.
The market, however, has recently rebounded as investors and manufacturers anticipate growth in battery storage applications.
The reopening of Jianxiawo is expected to relieve some of the supply pressure in the short term. Earlier this month, CATL received guidance on the fees it would need to pay to secure mining rights, a prerequisite for resuming production.
China dominates the global lithium market, both in mining and refining. According to industry estimates, the country accounts for roughly 85 percent of global lithium processing, giving Chinese producers significant influence over global prices.
Despite the market’s sensitivity to supply headlines from China, the lithium sector continues to struggle with imbalance brought by excess production throughout 2025.
Prices surged in July and August before retreating in September, with speculation about potential supply cuts from Australian producers generating brief rallies that faded against evidence of strong inventories and continued growth in mined output.
Analysts increasingly warn that without significant project delays, cancellations, or an unexpected surge in demand, the imbalance could persist into the next decade.
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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
