Lithium miners retrace share gains with Chinese output in focus

Bloomberg News | August 12, 2025 | 6:21 am Battery Metals Markets Top Companies Asia Australia China Lithium

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Greenbushes, the world’s largest hard rock lithium mine. (Image courtesy of Talison Lithium.)

Lithium producers’ shares fell — following sharp gains on Monday that were driven by the closure of a major mine closure — as the market weighed the outlook for Chinese output of the battery metal.

Stocks of miners declined in Hong Kong and Australia. Tianqi Lithium Corp. was about 8% lower as of 12:23 p.m. in the city after jumping 18% in the previous session, and Ganfeng Lithium Group Co. fell 5%, retracing about a quarter of its spike. In Australia, PLS Ltd. and Liontown Resources Ltd. also dropped.

The lithium market was rocked after Contemporary Amperex Technology Co. Ltd. confirmed the suspension of its Jianxiawo mine in the hub of Yichun, a move that may help to ease oversupply. The project accounts for about 6% of global lithium output, according to Bank of America Corp. There’s speculation other mines in the area could also be suspended as Beijing tackles a glut as part of its anti-involution drive to curb excessive competition and overcapacity.

Lithium futures on the Guangzhou Futures Exchange extended gains, although they rose less than daily-limit jump of about 8% seen on Monday.

Still, lithium-carbonate prices may lack the impetus for a sustained rise, Shanghai Securities News reported. The problem of excess capacity has not fundamentally improved, and CATL’s project may restart, it said, citing analysts.

In Yichun, the local authorities have requested that companies facing similar regulatory scrutiny submit updated reports on their mineral reserves by Sept. 30, without yet mandating any more production suspensions.

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The Jianxiawo case established a “strict tone” for regulatory approvals and enforcement, potentially broadening the extent of production halts and exacerbating supply shortages, Yongan Futures Co. said in a note.

“With a decisive outcome expected by Sept. 30, speculative trading activities might repeatedly emerge,” the analysts said. They also highlighted divergent views on time lines for mining license approvals or renewals.

(By Alfred Cang)