Overview

• CATL suspended operations at its Jianxiawo lithium mine in Jiangxi province for at least three months after its mining permit expired on August 9
• Lithium carbonate futures on China’s Guangzhou exchange surged 8% to their daily limit as traders anticipated tighter near-term supply
• Shares of major lithium producers jumped globally, driving the S&P/ASX 200 index to a record high above 8,852
• Analysts warn that the temporary halt will not resolve the structural oversupply that has weighed on lithium prices since late 2023
• Market watchers predict other Yichun-region mines may face similar permit-driven suspensions when licences expire after September 30