Problem for electric cars: World's largest lithium battery maker pauses China mine operations
The advance of electric cars seemed unstoppable, driven by increasingly affordable batteries. It's a democratization that depends largely on a steady supply of lithium, the "white gold" that has become the core of the competition. But a lump of sand—or rather, a mountain—ended up stalling the mechanism.
Chinese giant CATL, a key supplier to nearly every automaker from Peugeot to Tesla, has halted its largest lithium mine. This news has clearly shaken the entire industry chain.
It's a real shock to the industry. The Jianxiawo mine, located in Jiangxi province, has gone silent. This immense mining site, responsible for 6% of global lithium production alone, has had its operating license revoked by Chinese authorities.
The shutdown is abrupt and should last at least three months, the time necessary for CATL to adapt to administrative requirements.
This mine isn't just another extraction site. It's simply the beating heart of supply for the world's number one battery producer. Bank of America estimates, in fact, that other mines in this strategic region represent another 5% of global supply. In other words, when Jiangxi "catches a cold," the entire electric vehicle value chain runs the risk of pneumonia. The immediate effect was not long in coming: the shares of competing companies, both Chinese and Australian, soared, and the price of...
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