CATL Resumes Operations at Jiangxi Lithium Mine
Chinese battery giant CATL (300750.SZ) has restarted operations at its lithium lepidolite mine in China's Jiangxi province, according to a note from UBS on Thursday. This announcement comes four months after reports that the mine had temporarily suspended production, causing a surge in lithium miners' share prices.
Based on information from Shanghai Metals Market (SMM), UBS indicated that the mine is "currently resuming" operations. However, no further details were provided in the note. CATL did not immediately respond to emailed inquiries from Reuters, while SMM also did not provide an immediate response.
Two battery metals traders confirmed the resumption of mining operations in the area, speaking on condition of anonymity.
CATL's mine in Jiangxi province is a significant contributor to China's rapidly growing lithium supply. The reported closure of the mine in September 2023 led to a sharp rally in lithium stock prices.
UBS analysts suggest that CATL's decision to resume operations may be influenced by low inventories and the company's ability to lower costs by combining production from the mine with higher-grade ores.
On Friday, the November lithium carbonate futures contract on the Guangzhou Futures Exchange closed at 77,800 yuan ($10,675.81) per metric ton, representing a 0.3% increase from the previous day's close. Lithium prices have declined 4.75% from a two-month high reached on January 20.
On the Shenzhen Stock Exchange, CATL's share price closed at 261.28 yuan per share on Friday, reflecting a 3.2% increase from Thursday's close.