Lithium Stocks Plunge as CATL Signals Early Restart of Jianxiawo Mine, Adding to Global Oversupply Fears
Shares of global lithium producers tumbled on Wednesday after Chinese state media reported that Contemporary Amperex Technology (CATL) may resume production at its shuttered Yichun mine sooner than expected.
According to local media, CATL held a “resumption work meeting” this week to accelerate the restart of its Jianxiawo operation, suggesting production could return well ahead of the company’s previously indicated suspension period.
The possibility of renewed supply from China’s largest lithium mine unsettled global markets.
In the U.S., Albemarle, the world’s biggest producer of lithium for rechargeable batteries, dropped 11.5% in New York trading, while Sigma Lithium’s U.S.-listed shares fell 6.9%.
In Australia, Pilbara Minerals slumped as much as 16.7%, leading declines among miners, while IGO and Liontown Resources shed up to 14.2% and 15.8%, respectively.
In China, shares of Tianqi Lithium and Ganfeng Lithium opened about 5% lower, while lithium carbonate futures slid more than 7% to their lowest level in over a month.
The Jianxiawo mine is a crucial link in China’s lithium supply chain, capable of producing more than 46,000 metric tons of lithium carbonate equivalent annually—roughly 3% of the global supply projected for 2025, according to Australian government data.
CATL suspended the mine on August 9 following the expiration of its license, a move that had previously driven up lithium futures and boosted mining stocks.
The prospect of an early reopening, however, has added fresh pressure to an industry already grappling with oversupply and weaker-than-expected demand for electric vehicles.
Lithium prices have fallen sharply from pandemic-era highs, leaving many producers operating near break-even levels or at a loss.
CATL has not yet responded to requests for comment.
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