Chinese battery giant Contemporary Amperex Technology said on Monday it had suspended production at a major lithium mine, sparking a surge in lithium futures and miners’ share prices, amid a broader crackdown on overcapacity.
CATL said the license for its mine in Yichun, in the southern province of Jiangxi, had expired on August 9 and the company was applying to renew it “as soon as possible”.
The most active lithium carbonate futures on the Guangzhou Futures Exchange surged by 8% to hit the price limit up after the announcement, while shares of listed lithium miners in China and Australia soared more than 10%.
The mine, one of several CATL owns, can produce just over 46,000 metric tons of lithium carbonate equivalent annually, about 3% of forecast global output for 2025, according to data from the Australian government.
Chinese lithium miners rallied at the open on the news with Ganfeng Lithium’s shares up more than 4%, while its Hong Kong-listed stock surged around 10% at the open. Tianqi Lithium jumped around 11%.
Among Australian lithium miners, Liontown Resources (LTR.AX), was the top gainer, soaring nearly 25%. Pilbara Minerals (PLS.AX), IGO (IGO.AX), Core Lithium (CXO.AX), and Mineral Resources (MIN.AX), jumped between 10.5% and 17.4%.
