CATL's Jianxiawo lithium mine remains closed pending environmental approval

Chinese battery giant CATL's Jianxiawo lithium mine, located in Yichun, Jiangxi Province, continues to be suspended pending crucial environmental approval. State media reports indicate that the mine is currently undergoing maintenance, with no ore transportation or crushing activities occurring.

The Yifeng County Ecology and Environment Bureau has reportedly urged CATL to expedite the environmental impact assessment (EIA) procedures. This directive comes amid speculation about the mine's potential reopening and expectations for a swift return to full production. The project's mineral designation was changed from ceramic clay containing lithium to primarily lithium ore, necessitating a new EIA report, which was made available for public consultation on July 27.

CATL initially suspended operations at the Jianxiawo mine in August 2025 when its mining license expired. However, the company recently obtained a safety production permit on June 29. This permit represents a significant step forward, clearing a key regulatory obstacle after nearly a year-long suspension and paving the way for the mine's potential restart.

Despite the ongoing closure and pending environmental review, the market is reacting to developments in the lithium sector. The most active September lithium carbonate contract on the Guangzhou Futures Exchange saw a modest gain of 1.36 percent as of 0615 GMT. CATL's shares experienced a slight dip, closing down 0.02 percent.