The sources, who declined to be named, said CATL has asked suppliers and partners to ready equipment, chemicals and workers, and notified refineries that rely on raw materials from the mine.
However, the company is still awaiting regulatory approval, and the timeline could shift depending on government approval.
The Jianxiawo mine, located in Yichun, produces about 65,000 tons of lithium carbonate equivalent annually. Its closure on August 9 followed the expiration of a critical permit, which CATL was seeking to renew.
The suspension is seen as one of the most impactful disruptions to global lithium supply in recent years, due to increased government scrutiny of the sector.
Lithium prices have been volatile in recent months due to both oversupply and renewed optimism from the energy storage sector. The most active lithium carbonate contract on the Guangzhou Futures Exchange rose more than 10 percent this month, surpassing 100,000 yuan (US$14,000) per tonne earlier this week.
Bullish sentiment in the Chinese lithium market was further reinforced by recent comments from Ganfeng Lithium (OTC Pink:GNENF,HKEX:1772) Chairman Li Liangbin, who predicted that the price of lithium carbonate could reach 200,000 yuan per ton next year if demand grows by more than 30 percent.
The lithium market is still determined by oversupply
Global supply has exceeded demand in recent months due to slower adoption of electric vehicles, creating a glut that has put downward pressure on prices.
However, the market has recently recovered as investors and manufacturers anticipate the growth of battery storage applications.
The reopening of Jianxiawo is expected to relieve some of the supply pressure in the short term. Earlier this month, CATL received guidance on the fees it would have to pay to secure mining rights, a condition for resuming production.
China dominates the global lithium market, both in mining and refining. According to industry estimates, the country is responsible for roughly 85 percent of global lithium processing, giving Chinese producers significant influence on global prices.
Despite the market’s sensitivity to supply news from China, the lithium sector continues to struggle imbalance due to overproduction in 2025.
Prices rose in July and August before retreating in September, with speculation about possible supply cuts from Australian producers generating brief rebounds that faded against evidence of strong inventories and continued mining output growth.
Analysts are increasingly warning that without significant project delays, cancellations or an unexpected increase in demand, the imbalance could persist for the next decade.
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Securities Disclosure: I, Giann Liguid, have no direct investment interest in any company mentioned in this article.
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