CATL resumes operations at its lithium mine in Jiangxi

Chinese authorities last year refused to renew CATL’s licence to mine lithium in Jiangxi province after it expired in August 2025. Observers viewed the decision as part of the Chinese government’s efforts to ease pressure on an overheated lithium market, which had experienced a sharp price decline due in part to high inventories following a slower-than-expected ramp-up of electric mobility. Lithium is a key raw material for EV batteries.

According to Chinese media reports, CATL’s lithium mine in Jiangxi resumed operations on 29 June, significantly later than the three-month suspension originally communicated. The company had previously obtained the required safety approval from the authorities, a development that is also seen as an indication that the Chinese government is satisfied with the now stabilised lithium price environment.

The mine and its associated refinery have an annual production capacity of around 100,000 tonnes of lithium carbonate. The facility is regarded as one of the world’s largest individual lepidolite mining operations. Before the previous licence expired, Chinese media reported that the mine accounted for between eight and ten per cent of China’s total lithium carbonate production.

The CATL site in Jiangxi is a vertically integrated operation. Mining begins in an open-pit quarry, where rock is blasted, excavated and crushed. The process produces lepidolite concentrate, an ore containing lithium. However, this material cannot be used directly in battery cell production.

The ore is subsequently processed at a lithium refinery. There, the lepidolite concentrate undergoes an energy-intensive refining process involving roasting, leaching and chemical purification. The final product is battery-grade lithium carbonate, which CATL uses directly in cathode materials such as LFP and NMC for battery cell production.

cnevpost.com