CATL $3750 (-2.43%) is reportedly planning to restart an important lithium mine at the beginning of next month after the prices for lithium carbonate in China have recently been subject to strong fluctuations.
The battery manufacturer has drawn up a preliminary plan to restart its Jianxiawo lithium mine in Yichun in early December, Bloomberg reported today, citing sources.
CATL has asked suppliers and partners to provide equipment, chemicals and labor, and informed refineries that extract raw materials from the mine, the sources said.
However, the company's preparations do not guarantee regulatory approval for the mine, Bloomberg noted. CATL's plans are subject to change and are still awaiting final approval from the authorities, the sources said.
CATL halted production at the Jianxiawo lithium mine on August 10 due to the expiration of a key mining license, which briefly led to a spike in lithium carbonate prices.
CATL stated at the time that it was actively processing the application to renew the mining license.
On September 30, Bloomberg reported that CATL's Jianxiawo mine had received approval for reserves, bringing it one step closer to obtaining a mining license and resuming production.
Earlier this month, CATL was informed of the mining rights fees to be paid, a crucial step towards restarting operations at the lithium mine.
Lithium is one of the most important raw materials for batteries, which usually account for a significant proportion of the cost of an electric vehicle model.
Lithium carbonate and iron phosphate are the main raw materials for lithium iron phosphate (LFP). Yichun in Jiangxi Province is a center of lithium production and is often referred to as the "lithium capital of Asia".