CATL subsidiary Yichun Times New Energy Mining received land use pre-approval from Jiangxi Natural Resources Department on June 18 for the Jianxiawo lithium mine project, with the license effective June 17, 2026 and valid until June 17, 2029. The approval follows the mine's shutdown on August 9, 2025 after its mining permit expired, and the company's voluntary cancellation of the original land use approval on June 8. The Jianxiawo mine, acquired for 865 million yuan in April 2022, holds estimated resources of 6.57 million tonnes lithium carbonate equivalent, making it one of the world's largest single lithium mica deposits.
Jiangxi Natural Resources Department Issues Land Use Pre-Approval
Jiangxi Natural Resources Department published an administrative license on June 18 titled "Land Use Pre-Approval and Site Selection Opinion for Construction Projects of the People's Republic of China." The administrative counterparty is Yichun Times New Energy Mining, an indirect controlling subsidiary of CATL. The license decision takes effect June 17, 2026 and remains valid until June 17, 2029.
The administrative license applies to the lithium mining project at Zhenkoulli in Yifeng County and Jianxiawo in Fengxin County, Jiangxi Province. The original opinion document was canceled by Jiangxi Natural Resources Department on June 8 following Yichun Times' voluntary application. The Land Use Pre-Approval and Site Selection Opinion is a legally required preliminary document for project implementation.
Jianxiawo Mine Background and Production History
On April 20, 2022, Yichun Times successfully bid 865 million yuan for the ceramic clay (lithium-bearing) exploration rights at the Zhenkoulli-Jianxiawo mining area in Jiangxi Province. The exploration rights cover 6.44 square kilometers, with inferred porcelain stone resources of 960 million tonnes and associated lithium oxide resources of 2.6568 million tonnes, equivalent to approximately 6.57 million tonnes of lithium carbonate equivalent (LCE), ranking among the world's largest single lithium mica deposits.
Jiangxi lithium mines generally have low grades, with Jianxiawo averaging approximately 0.27% lithium oxide content. Before the shutdown, the mine area produced monthly lithium carbonate output of approximately 7,000 to 8,000 tonnes, representing about one-tenth of domestic demand.
On the morning of August 11, 2025, CATL confirmed that the company's Yichun project mining permit expired on August 9, 2025 and mining operations had been suspended. Regarding project restart, CATL's statement at the time indicated the company was processing the mining certificate extension application according to relevant regulations and would resume production as soon as approval was received.
Regulatory Changes Triggered Mine Shutdown
Multiple factors contributed to the Jianxiawo lithium mine shutdown. The revised Mineral Resources Law implemented in July 2025 designated lithium as an independent strategic mineral and established a hard threshold of 0.4% lithium oxide for associated lithium classification. The Jianxiawo mine area's average lithium oxide grade of only 0.27%-0.28% meant it could no longer be developed under the "ceramic clay with associated lithium" model. The existing mining permit, land use planning, and environmental assessment documents all became invalid. The company must change the primary mineral type to independent lithium ore, pay additional lithium mining rights fees exceeding 100 million yuan, reduce the mining scale to 30 million tonnes per year, and completely restart the full chain of approval materials.
In that month, Yichun Municipal Natural Resources Bureau issued a notice clarifying that eight lithium-bearing mineral rights including Jianxiawo had problems such as circumventing higher-level approval authority and handling procedures beyond authority, requiring completion of mineral type change reserve verification reports by the end of September that year. These eight projects, including CATL's, account for over 80% of domestic lithium mica total supply. In August of last year, CATL's Jianxiawo mine and Gotion High-Tech's Geshili Shuinan mine were the first to halt production.
Lithium Market Reacts to Approval News
Following the land use approval news, capital markets responded immediately. On June 18, lithium carbonate futures declined after opening, closing with the main contract 2609 at 160,500 yuan per tonne, down 6.58%, a decrease of 11,300 yuan per tonne from the previous trading day. Open interest that day was 450,964 contracts, down 4,883 contracts from the previous trading day, with intraday capital outflow of 1.712 billion yuan.
Spot markets also faced pressure. Shanghai Metals Market data showed battery-grade lithium carbonate morning market average price on June 18 fell 800 yuan from the previous working day to 168,800 yuan per tonne.
A-share lithium mining sector stocks collectively weakened. As of June 18 close, CATL stock closed down 1.87% at 391.55 yuan. Guocheng Mining fell over 7%, Shengxin Lithium Energy and Dazhong Mining fell over 5%, Salt Lake Co. and Tianhua New Energy fell over 3%, and Tianqi Lithium and Ganfeng Lithium fell over 2%.
Approval Represents Restart Milestone
While this land use pre-approval only signifies project land site selection compliance, with a complete approval process remaining before formal construction and ore production, this represents a substantive turning point in the Jianxiawo lithium mine shutdown and rectification process. The tailings dam for Jianxiawo lithium mine will be a major core checkpoint in subsequent project approvals. The original ore grade is relatively low, with annual production of tens of millions of tonnes of lithium slag requiring supporting large-scale high-grade tailings facilities. Combined with Yichun's strict environmental supervision of lithium mines, even with land use pre-approval obtained, tailings-related special procedures will continue to constrain mining permit renewal and infrastructure construction progress.
FAQ
What did CATL's subsidiary receive on June 18?
Yichun Times New Energy Mining, a CATL subsidiary, received land use pre-approval from Jiangxi Natural Resources Department on June 18 for the Jianxiawo lithium mine project. The license is effective June 17, 2026 and valid until June 17, 2029.
Why did the Jianxiawo mine stop production?
The mine stopped production on August 9, 2025 after its mining permit expired. The revised Mineral Resources Law implemented in July 2025 set a 0.4% lithium oxide threshold for associated lithium classification, but Jianxiawo's average grade of 0.27%-0.28% meant it could no longer operate under the previous "ceramic clay with associated lithium" model, invalidating existing permits and requiring complete re-approval.
How did lithium markets react to the approval news?
On June 18, lithium carbonate futures main contract fell 6.58% to 160,500 yuan per tonne, down 11,300 yuan from the previous day. Battery-grade lithium carbonate spot price fell 800 yuan to 168,800 yuan per tonne. CATL stock closed down 1.87% at 391.55 yuan, with broader lithium mining sector stocks declining 2-7%.
