company news about China Shuts Down Major Lithium Mine, Causing Global Price Spike

Beijing, China — August 2025
China has suspended operations at a major lithium mine in Yichun, one of the country’s most productive lithium-resource regions, after the mine’s operating license expired. The shutdown has triggered an immediate surge in global lithium prices and renewed concerns over supply stability for the battery industry.

Key Points

• The mine accounted for approximately 46,000 tons of lithium-carbonate equivalent per year, representing around 3% of global output.

• Following the announcement, lithium-carbonate futures jumped by roughly 8%, and global lithium-mining stocks rallied.

• Analysts view the suspension as part of China’s efforts to curb over-production and consolidate the lithium industry, aiming for healthier long-term market balance.

Impact on the Battery Sector

The sudden supply disruption may increase raw-material costs for battery manufacturers, affecting both EV battery pricing and energy-storage system costs worldwide. The event underscores the vulnerability of global clean-energy supply chains to resource-concentration risks.