Lithium Prices Fall as China’s CATL Mine Restarts and Global Supply Rises

Lithium prices on the Guangzhou Futures Exchange slipped to a five‑month low of about 136,800 yuan per tonne, roughly 30% below the peaks reached in May. The decline follows the restart of Contemporary Amperex Technology Co.’s (CATL) Jianxiawo mine in Yichun, China, which adds an estimated 3% of global lithium supply back online. The mine’s safety production permit was granted in late June after a year‑long shutdown.

Australian producers are also bringing capacity back online. Mineral Resources resumed operations at its Bald Hill mine and its larger Wodgina joint venture with Albemarle, adding significant spodumene output. The combined effect of these restarts has sparked concerns of a supply surplus despite sustained demand from electric‑vehicle makers, AI data centers and battery‑storage projects. Chinese lithium battery manufacturers reported strong earnings, yet their stock valuations fell, highlighting a market shift from rapid expansion to disciplined competition.

Analysts note that the price slide reflects a broader re‑evaluation of the lithium market as new capacity floods the market, potentially moderating the rapid price gains seen earlier in the year.