The confirmation of the suspension of production at Ningde Times’ Jianxiawo mine has once again fueled market sentiment to drive up lithium prices.

On August 11, Ningde Times stated on an interactive platform that mining operations at its Yichun project were suspended after the mining license expired on August 9. The company is processing the renewal application as required and will resume production as soon as approval is granted. This incident has minimal impact on overall operations.

Stimulated by this news, all lithium carbonate futures contracts—except the soon-to-be-delivered LC2508—hit their daily limit-up, driving up domestic lithium carbonate spot prices and lithium mining stocks. Ganfeng Lithium’s H-shares surged over 20% intraday.

Notably, speculative activity in lithium carbonate futures has intensified.

For instance, the turnover-to-position ratio—a measure of speculative activity—for the “old main contract” LC2509 rose from below 1x in late June to 4x by July 24. Following exchange interventions and contract rollovers, the ratio fell below 2x.

However, as some funds returned to the commodities market last week, the ratio for the “new main contract” LC2511 rebounded sharply to around 2.8x.

Increased trading activity has amplified price fluctuations in lithium carbonate futures, raising volatility risks in spot and stock markets.

Second Wave of Volatility

Since late July, lithium carbonate futures have experienced two upward trends.

The first was a roller-coaster rally from July 21 to 31, followed by a second wave starting August 1, driven by returning funds and mining disruptions.

The initial surge began with expectations of “anti-internal competition” policies and stricter mining approvals, ending when exchanges stepped in to regulate.

During this period, significant capital flowed into futures. Data from Wenhuafinance showed open interest rising from 661,000 lots on July 18 to 908,000 lots as prices approached ¥80,000/ton.

The rally was short-lived. After exchanges imposed position limits on LC2509, open interest dropped below 700,000 lots—a reduction of 200,000 lots.

However, speculation about supply constraints persisted.

Records indicate Ningde Times’ Yichun Jianxiawo mining rights began on August 9, 2022, and were set to expire on August 9, 2025.

Some investors reportedly visited the mine to verify the suspension, even waiting until 4 a.m. before leaving.

Before the news broke, half of the previously withdrawn 200,000 lots had already returned to lithium carbonate futures.

From August 6 to 8, open interest rebounded from 690,000 to 782,000 lots—a net increase of 90,000 lots.

On August 11, pre-market analyses anticipated a rally, which materialized as lithium carbonate futures opened limit-up.

By the close, all contracts except the near-month LC2508 (up 6.53%) hit limit-up, surpassing ¥80,000/ton and July 24’s peak to reach a six-month high.

Spot prices followed suit.

Wind’s average battery-grade lithium carbonate price rose ¥2,560 to ¥74,520/ton; Shanghai Steel Union’s midpoint hit ¥78,000/ton; BaiChuan’s 99.5% battery-grade lithium carbonate surged 6.99% to ¥76,500/ton.

Lithium mining stocks also rallied. Shenzhen Chengxin Lithium, Jiangte Motor, and two others closed limit-up, while Ganfeng and Tianqi Lithium’s H-shares jumped 20.84% and 16.87%, respectively.

Some foreign investment banks upgraded these H-shares from “underperform” to “buy.”

Given domestic market movements, overseas lithium firms like Albemarle and SQM may also rise.

At pre-market, Lithium Americas was up nearly 9%, LAR over 9%, SQM over 7%, and Sigma Lithium over 12%.

Unlike late July, August 11 saw no major capital inflows.

Open interest edged up just 2,571 lots to 785,000, while LC2511 shed 3,030 lots to ~318,000.

This reflects market uncertainty, amplified by LC2511’s limit-up reducing liquidity.

Ningde Times’ Jianxiawo mine

Ningde Times’ Jianxiawo mine is a lithium mine in Fujian Province, China, operated by the world’s largest electric vehicle (EV) battery manufacturer, CATL (Contemporary Amperex Technology Co. Limited). The mine plays a key role in securing lithium resources for China’s growing EV battery industry. While specific historical details about the mine are limited, its development aligns with China’s push for domestic control over critical battery materials to support its clean energy and automotive sectors.

Yichun project

The “Yichun Project” refers to a major forestry and ecological initiative in Yichun, a city in China’s Heilongjiang Province, known for its vast forests. Historically, Yichun was a key timber production base, but over-exploitation led to environmental concerns, prompting sustainable reforestation and conservation efforts. The project aims to balance economic development with ecological protection, promoting green industries and eco-tourism in the region.

Ganfeng Lithium

Ganfeng Lithium is a leading Chinese lithium producer founded in 2000 and headquartered in Xinyu, Jiangxi Province. It specializes in lithium mining, refining, and battery manufacturing, playing a key role in the global supply chain for electric vehicles and renewable energy storage. The company has expanded internationally, with investments in lithium resources in countries like Australia, Argentina, and Mexico.

Shenzhen Chengxin Lithium

Shenzhen Chengxin Lithium is a Chinese company specializing in the research, production, and sale of lithium battery materials, playing a key role in the global new energy industry. Established in Shenzhen—a major tech and innovation hub—the company contributes to China’s leadership in lithium-ion battery supply chains. While not a cultural site, it reflects Shenzhen’s transformation into a high-tech industrial center since China’s economic reforms.

Jiangte Motor

There is no widely recognized cultural or historical site known as “Jiangte Motor.” If you are referring to a specific company, location, or lesser-known site, please provide additional details so I can offer an accurate summary. Alternatively, it may be a mistranslation or typo—could you clarify or check the name?

Tianqi Lithium

Tianqi Lithium is a leading Chinese company specializing in lithium production, a key component for batteries in electric vehicles and renewable energy storage. Founded in 1995 and headquartered in Chengdu, Sichuan Province, it has grown into one of the world’s largest lithium producers, with significant investments in global lithium mining and processing. The company plays a crucial role in the global supply chain for clean energy technologies.

Albemarle

Albemarle is a historic region in the southeastern United States, originally encompassing parts of present-day North Carolina and Virginia. Named after the Duke of Albemarle, one of the Lords Proprietors of the Carolina colony in the 17th century, it was an early center of English settlement and colonial governance. Today, the name survives in places like Albemarle Sound and Albemarle County, reflecting its colonial-era significance.

SQM

SQM (Sociedad Química y Minera de Chile) is a Chilean chemical company and a major global producer of lithium, iodine, and potassium nitrate. Founded in 1968, it initially focused on nitrate extraction before expanding into lithium, playing a key role in Chile’s mining industry. Today, SQM operates in the Atacama Desert, leveraging its rich mineral resources to supply critical materials for batteries, agriculture, and other industries worldwide.