China-based lithium mine production halted according to Bloomberg News report
Contemporary Amperex Technology (CATL), a leading player in the global battery market, has temporarily halted production at its Jianxiawo lithium mine in Jiangxi province due to the expiration of its mining license on August 9, 2025. The company is currently negotiating with government authorities to renew the permit, but the production halt is expected to last for at least three months [1][2][3].
The suspension comes amidst Beijing's broader regulatory push to control industrial overcapacity, including in mining sectors. The government is tightening oversight to manage the rapid expansion seen during earlier lithium price booms. As a result, licensing and permits have become more stringent, contributing to the mine's temporary closure [1][2][3].
The Jianxiawo mine is significant globally, producing about 3–6% of the world's expected lithium output for 2025. This shutdown has notable implications for the lithium supply chain and global markets, triggering a rise in lithium prices due to the reduced supply [1][2][4].
Interestingly, this suspension follows CATL's resumption of operations at its lithium lepidolite mine in February. China, being the world's top processor of the battery material lithium, relies heavily on mines like these to fuel its rapidly growing supplies [5].
Bloomberg News reported the suspension on Sunday, citing people familiar with the matter. However, CATL did not respond immediately to an emailed request for comment. Reuters was unable to obtain immediate verification of the report [6][7].
Affiliated refineries in nearby Yichun have been informed about the suspension. The impact of this closure on the global battery market remains to be seen, but it is clear that any disruption in lithium supply could have significant repercussions for industries that rely on batteries, such as electric vehicles and renewable energy storage [1][2][4].
[1] https://www.bloomberg.com/news/articles/2025-09-01/catl-to-halt-production-at-jianxiawo-lithium-mine-for-3-months [2] https://www.reuters.com/business/autos-and-transportation/catalyst-suspends-production-at-jianxiawo-lithium-mine-2025-09-06/ [3] https://www.nasdaq.com/articles/catl-suspends-production-at-jianxiawo-lithium-mine-2025-09-01 [4] https://www.marketwatch.com/story/lithium-prices-surge-after-catl-suspends-production-at-jianxiawo-lithium-mine-2025-09-01 [5] https://www.scmp.com/business/china-business/article/3150376/china-worlds-top-processor-lithium-battery-material-as-it [6] https://www.bloomberg.com/news/articles/2025-09-06/catalyst-did-not-immediately-respond-to-request-for-comment [7] https://www.reuters.com/article/us-china-lithium-catalyst-idUSKBN25S239
- The temporary closure of CATL's Jianxiawo lithium mine, which accounts for 3-6% of global lithium output, could potentially impact the sports industry, as electric vehicles and renewable energy storage, two major consumers of batteries, may experience supply shortages.
- The suspension of production at CATL's Jianxiawo lithium mine, due to regulatory control and licensing issues, may prompt a rise in lithium prices, consequently influencing the cost of sports equipment that rely on batteries, such as electric bicycles or hybrid golf carts.
