Key facts
- Lithium carbonate futures on the Guangzhou Futures Exchange fell 9% in two days.
- Speculation about the potential restart of CATL's Jianxiawo lithium mine fueled the price drop.
- The Guangzhou Futures Exchange implemented measures to curb speculative trading.
- The Jianxiawo mine, with an annual capacity of over 46,000 tonnes LCE, has been suspended since August 2025.
- The mine's shutdown was due to an expired mining license, with CATL seeking renewal.
Lithium carbonate futures in China experienced a sharp 9% decline over two days, primarily driven by speculation surrounding the potential restart of Contemporary Amperex Technology Co. Ltd.'s (CATL) Jianxiawo lithium mine in Jiangxi province. This downturn was exacerbated by the Guangzhou Futures Exchange (GFEX) implementing measures to curb speculative trading, including increased transaction fees and limits on daily open positions.