China lithium mining licence revocation drives price surge
finance.yahoo.com
GlobalData
Thu, December 18, 2025 at 1:53 AM PST 2 min read
Prices of lithium in China have surged after the announcement of the revocation plan for lithium mining licences by the natural resource authority in Yichun, Jiangxi province, the country’s main lithium-producing hub.
The move has raised concerns among investors about the future supply of lithium, reported Reuters.
On the Guangzhou Futures Exchange, the most active lithium carbonate contract climbed to 109,860 yuan ($15,595) per tonne (t), its highest level since June 2024.
The contract closed up 7.61% at 108,620 yuan.
The price rally follows a notice published by the Yichun Bureau of Natural Resources, detailing plans to cancel 27 mining permits after a public consultation period ending on 22 January 2025.
According to the bureau’s published list, all the licences slated for cancellation had already expired, with some having lapsed more than a decade ago, said Reuters.
Of the 27 licences earmarked for revocation, 17 were registered for ceramic clay, seven for limestone, and the remainder cover kaolin, quartzite and other minerals, said Yicai Global.
All licences proposed for cancellation expired between 2010 and 2024.
One licence, identified as a lithium-bearing ceramic stone mine, was held by Jiangxi Special Electric Motor, which stated it had submitted an objection to the local authorities.
The bureau confirmed that this permit expired on 15 September 2024.
The Yichun Bureau of Natural Resources did not immediately respond to Reuters’ emailed request for comment regarding the planned revocations.
Analysts at Chinese broker Galaxy Futures said in a client note that the licence cancellations would have minimal near-term effect on supply, as none of the revoked permits applied to mines currently in operation.
Since September, the bureau has carried out multiple rounds of licence reviews, including the cancellation of six mining permits on 27 November.
Lithium carbonate prices have been on an upward trend since August, when operations at the Jianxiawo mine, run by CATL, were halted after its mining licence expired.
Stronger demand from the energy storage industry is also said to have provided further support to lithium prices.
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