Chinese media outlet Calian reports that all mines that hold valid governmental permits have resumed production.
"The impact of the latest shutdowns in Jiangxi is overblown. The region will account for just circa 7% of lithium supply in 2023, but major mines were only shut for a few days," Cameron Perks, principal analyst at Benchmark Mining Intelligence said on social media platform Linkedin on Tuesday.
Tianqi Lithium and CATL are among the lithium companies exploiting the vast lepidolite reserves in the region, which account for around a third of China's reserves. According to the US Geological Survey, China holds reserves of 6.8Mt lithium.
Lithium prices
Lithium prices in China have slumped by almost a third in the past three months after weaker demand in the world's largest market for electric vehicles has punctured a two-year rally.
Prices dropped 29% from November highs to Rmb425,000 (US$61,795/t), according to pricing agency Fastmarkets, driven by concerns over the strength of EV demand in Asia's largest economy.
Hydroxide (CIF, Fastmarkets MB) closing price was at US$76,150/t for the front month yesterday.
"Bearish sentiment remains in control and Fastmarkets' analysts state in their most recent tracker to the market that they expect prices to soften further. However, they also note that the reasons for the weakness are "on balance likely temporary and will not linger," Peter Hannah, senior price development manager at the price reporting agency said.
This view is supported by Benchmark's Perks, who said "Lithium price declines have been a result of seasonally weak EV sales and lithium buying activity. Underlying fundamentals remain strong."
