Lithium prices in China fell sharply on Friday, short-circuiting a rally, after the main exchange stepped in to curb speculative trading and on a report that battery giant CATL could restart production at its flagship lithium mine.
The most-active lithium carbonate contract on the Guangzhou Futures Exchange closed daytime trading down 9% at 91,020 yuan ($12,804.21) per metric ton, hitting its lower limit and giving back most of this week’s gains.
The contract on Thursday hit its highest since June 2024 at 102,500 yuan a ton.
On Thursday, GFEX said it would increase transaction fees for some futures contracts of lithium carbonate from November 24, and it also planned to limit the daily open position for non-futures company members.
Such a move was widely seen as targeting speculative trading, analysts said, blaming some of the price correction on the decision.
Bloomberg News reported on Friday that CATL is planning to restart production at its lithium mine in Yichun, Jiangxi Province.
The Jianxiawo mine, where production has been suspended since August due to the expiration of its mining licence, can produce just over 46,000 tons of lithium carbonate equivalent a year, about 3% of global output for 2025, according to data from the Australian government.
CATL has told its lithium carbonate smelters to be prepared for a resumption of the Jianxiawo mine, two sources told Reuters without specifying a date.
Lithium prices plunge in China after moves to curb speculative trading