The Jianxiawo lithium mine is seen shutting down all operations in Yichun, Jiangxi province, China. This decision comes on the heels of an announcement by CATL, the company that operates the mine. The order to stop all activity, dated August 11, was tied to an nearing expiration of a key permit needed for the project to continue. Jianxiawo Lepidolite, a lithium ore, is one of the largest sources found at Jianxiawo. This region is becoming increasingly important to the lithium supply chain as a whole, particularly in regard to battery manufacturing.
Jianxiawo lithium mine, Yichun, a global hub for lithium extraction. It’s been an indispensable part in fulfilling the skyrocketing global thirst for lithium. CATL, a leading player in the lithium industry and a prominent battery manufacturer, has relied heavily on the resources extracted from this mine. With a major lithium-producing company on the verge of being shut down and the very real possibility of increased lithium prices in the coming years,
The halt of operations is particularly noteworthy given the increasing global demand for lithium, driven by the rise of electric vehicles and renewable energy technologies. Analysts are already guessing how long the latest lithium price rally can last given a cloud of uncertainty surrounding production capabilities.
Satellite image of the Jianxiawo lithium mine that recently made international headlines. Featured in a Financial Times story on August 26, 2025, this dramatic image captures the enormity of the mine’s operation and its importance in the booming global lithium market. As the graphic above illustrates, the mine will play a key role in supplying one of the most critical, growing resource demands for CATL and the wider lithium industry.
CATL has not publicly provided information on the reasons behind or expected duration of the operational pause. It’s clear that this decision is motivated by choking off regulatory actions ahead of the permit’s expiration. If followed through, this development would indicate a change in China’s production capacity away from one of their major lithium suppliers.