 |
Photo courtesy of CATL |
[Alpha Biz= Kim Jisun] SEOUL, August 11 — Contemporary Amperex Technology Co. Limited (CATL), the world’s largest battery manufacturer, has temporarily suspended operations at its Zhenxiao lithium mine in Yichun, Jiangxi Province, China, according to reports from Reuters and Bloomberg.
In a message to investors on August 11, CATL confirmed it had halted mining operations and was working to expedite the renewal of its mining license in compliance with relevant regulations. “Production will resume once approval is granted,” the company stated, without specifying the expected duration of the suspension. CATL added that the pause is unlikely to have a significant impact on its overall operations.
Bloomberg reported a day earlier, citing multiple sources, that CATL had informed employees and nearby affiliated smelting facilities that the mine’s operations would be halted for at least three months. Chinese media, including Securities Times and Futures Daily, noted that the mining license for Zhenxiao expired on August 9, and operations were suspended from August 10. Industry sources indicated there are no immediate plans to restart mining.
Analysts suggest the suspension may be linked to Chinese authorities’ recent emphasis on curbing overproduction and low-price competition in the lithium industry, with the license renewal delay potentially serving as a supply control measure.
The lithium sector has been facing challenges due to global oversupply and slowing electric vehicle demand. Lithium prices, which peaked in 2022, have since plunged nearly 90%. The Zhenxiao mine accounts for roughly 3% of global lithium output and about 12.5% of China’s total production. Bloomberg also reported that lithium carbonate futures on the Guangzhou Futures Exchange surged nearly 9% on August 8 local time.
알파경제 Kim Jisun (stockmk2020@alphabiz.co.kr)
