CATL set to restart Yichun lithium mine after license lapse

CATL is set to restart operations at its Yichun lithium mine in Jiangxi, eastern China, after its license lapsed in August, according to Jiemian News.

CATL, based in Ningde, Fujian, is the world’s largest EV battery maker with a 38% global market share this year.

The mine is expected to receive regulatory approval to resume shortly before or after the Lunar New Year holiday, which starts February 15.

Lithium from the mine is used in lithium iron phosphate batteries common in EVs.

The Yichun site had been offline since August, and its return could increase lithium supply as automakers push for cheaper costs.

UBS estimated the mine could contribute about 8% of China’s total lithium output.

CATL supplies batteries to clients including Tesla, BMW, and Volkswagen, and has expanded into batteries for ships and electric aircraft.

🔗 Source: South China Morning Post

🧠 Food for thought

Implications, context, and why it matters.

Restart timing still unclear amid prep

Several sources say CATL is preparing a restart at the Jianxiawo mine in Yichun, Jiangxi, yet no firm timeline or final approval exists 1.
The site produces 65,000 tonnes of lithium carbonate equivalent (LCE) a year, around 6% of global supply 2.
Operations halted after the license expired on August 9, 2025. Local officials also audited eight other Yichun miners for non-compliance 2.
Recent environmental impact assessment (EIA) filings hint at long approvals and build work, so a full restart may slip past February 3.
Watch for license terms like water caps or environmental quotas, which could limit output after a restart.

Cheaper LFP inputs could open deals for ESS developers and buyers

Extra supply from an 8% share of China’s lithium could pull lithium carbonate down from 110,000 yuan per tonne after a 20% rise since August 1.
Energy storage system (ESS) developers can lock forward contracts (agreements to buy later at preset prices) for lithium iron phosphate (LFP) cells before a pullback, since cell costs track lithium carbonate 4.
A 10,000 yuan per tonne drop in lithium carbonate cuts LFP cathode costs by 2,300 to 2,500 yuan per tonne, which matters for large storage projects 4.
Battery-cell procurement teams at utilities and independent power producers plus ESS integrators can use hedging contracts or price-indexed deals tied to China’s lithium carbonate futures market (exchange-traded contracts).
Specialist commodity trading platforms can do the same. The market has seen 9% single-day swings 5.