Lithium Prices Sink To Five-Month Lows Amid Oversupply Jitters
India Targets Five Small Modular Reactors by 2033 Alex Kimani is a veteran finance writer, investor, engineer and researcher for Safehaven.com.
Lithium prices have sunk to a five-month low as the return of previously idled mine capacity triggered fears of a massive market oversupply.
Lithium prices on theGuangzhou Futures Exchange(GFEX), the most active lithium carbonate contract, fell to 136,800 yuan ($20,210) per tonne on Wednesday, nearly 30% below their multi-year highs reached in mid-May.
The sharp pricing downturn is linked to a wave of accelerating mine restarts and expansions across China and Australia.Last month, China’s EV battery giant,Contemporary Amperex Technology Co.
(CATL),secureda safety production permit for its flagship Jianxiawo lithium mine in Yichun.
The permit clears the final regulatory hurdle to restart production after a nearly one-year suspension, bringing ~3% of global supply back online.
CATL’s Jianxiawo mine was suspended in August 2025 after its operating license expired during a broader regulatory crackdown on environmental compliance, waste management and tailings safety in Yichun, China’s largest lithium mining hub.
The project contains an estimated 960 million tonnes of porcelain stone ore, equivalent to roughly 2.66 million tonnes of lithium oxide, and is capable of producing 100,000 to 150,000 tonnes of lithium carbonate equivalent (LCE) annually.
At full production, Jianxiawo supplies roughly 3% of global lithium output and between 8% and 10% of China’s domestic production.
Related: India Targets Five Small Modular Reactors by 2033 Australian producers are also accelerating new supply after lithium prices rebounded earlier in the year.
In May, Mineral Resources (MinRes) restarted its wholly owned Bald Hill mine, reversing its November 2024 decision to place the operation on care and maintenance.
Bald Hill is capable of producing about 165,000 tonnes of spodumene concentrate annually.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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