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A major announcement from China has rattled global markets, wiping out billions from Australian mining companies overnight.
China’s Contemporary Amperex Technology (CATL) confirmed that it will resume operations at its Jianxiawo lithium mine in Jiangxi Province, a site that produces nearly 8% of the world’s lithium supply. The decision has sent shockwaves through the commodity markets, with fears of oversupply pushing lithium prices sharply lower.
The impact was immediate: Australian mining giants lost a combined $8.4 billion in market value. Pilbara Minerals plunged 15%, Liontown shed nearly 17%, and IGO dropped 13.5%. Even larger players like Rio Tinto and BHP were not spared, each falling 1.7%.
The slump follows a brief surge in lithium futures after CATL suspended mining last month due to a lapsed license. Traders even deployed drones over the site in search of clues. With operations now restarting, analysts warn that lithium’s notoriously cyclical market could face fresh volatility.
Lithium is central to the global shift toward electric vehicles (EVs) and green energy, making it one of the most closely watched commodities. Australia, a leading exporter of raw lithium ore to China, remains vulnerable to such supply-side shocks.
The news also comes just days after Prime Minister Anthony Albanese discussed critical minerals and trade security with US President Donald Trump. With China’s dominance in processing critical minerals, the development highlights the ongoing geopolitical tensions shaping the future of clean energy.
