Shares of Lithium Miners Drop Following CATL Mine Reserve Approval

Shares of lithium miners in Australia and the US fell following a Chinese government approval of a reserve report from a prominent lithium producer, alleviating some worries about potential output disruptions.

Liontown Resources experienced a decline of up to 9.9%, while Pilbara Minerals dropped by 7.9%, and IGO fell 6% during Wednesday morning’s trading in Sydney. In the US, major producers such as Albemarle Corp and SQM also saw a decrease overnight.

The declines were triggered after Bloomberg reported that Chinese authorities had approved the reserve report for a Contemporary Amperex Technology mine in Yichun city, according to sources familiar with the situation.

Production at CATL’s Jianxiawo lithium mine has been suspended since August due to an expired mining permit that was not renewed. The recent approval of its reserve report moves the site closer to potentially resuming operations, although no guarantees are in place, according to the sources.

The lithium sector has faced challenges due to a global oversupply worsened by waning demand for electric vehicles. Prices for this battery material have fluctuated significantly in recent months amid government scrutiny and concerns regarding lepidolite production in China, which was projected to represent 11% of global supply this year before licensing issues arose, according to industry consultancy CRU Group.

Gotion High-Tech Co, which has maintained production during this period, has also received approval for its reserve report from China’s Ministry of Natural Resources.

“The anecdotal feedback we’ve received about meetings with the ministry indicates a proactive and supportive approach,” stated Martin Jackson, head of battery raw materials at CRU. “We always anticipated the government would take a market-responsive stance on these licensing matters.”

© 2025 Bloomberg

Follow Moneyweb’s comprehensive finance and business updates on WhatsApp here.