Chinese Lithium Stocks Tumble as CATL Resumes Mine Operations — Update

By Jiahui Huang

Shares of Chinese lithium producers fell sharply in Hong Kong after a state media report said that the world's top battery maker would restart a mine, fueling fears of an oversupply that could hurt prices and squeeze margins.

Ganfeng Lithium dropped 6.6% by midday Wednesday, while Tianqi Lithium fell 8.15%.

CATL, the world's largest maker of electric-vehicle batteries, will soon restart production at one of its mines in Yichun, earlier than the market had expected, state media Securities Times reported late Monday.

Citi had estimated it would take five to six months to resume operations after mining licenses were renewed, according to a note.

CATL didn't immediately respond to a request for comment from The Wall Street Journal.

The mine's license expired on Aug. 9, prompting a suspension of production.

At the time, Jefferies analysts in a note said that the impact of the suspension would likely be in the low to mid single digit percentage of global supply on a monthly basis.

Expectations that the restart would boost lithium supply and weigh on prices sent producers' shares lower in Hong Kong and on mainland markets. Shares of Chengxin Lithium Group fell 5.0% in Shenzhen.

Lithium has been a cautionary tale for traders trying to ride the global shift to rechargeable batteries. While lithium-ion batteries power electric vehicles, the move away from gas-powered cars has been slower than many investors and auto executives anticipated.

Write to Jiahui Huang at jiahui.huang@wsj.com

(END) Dow Jones Newswires

September 10, 2025 02:54 ET (06:54 GMT)