CATL and Lopal restart China lithium refinery despite price rout

Jiangsu Lopal Tech Co. and Contemporary Amperex Technology Co. Ltd. are restarting their lithium refinery in China after a roughly five-month halt, further threatening any price recovery for the key battery metal.
The lithium carbonate refinery in Yichun in the Jiangxi province is expected to produce about 3,500 tons this month, Jiangsu Lopal’s media representative said in a response to Bloomberg’s query. The facility is a joint venture with CATL, as the world’s top electric-vehicle battery maker is known.
CATL didn’t immediately respond to requests for comments.
The restart risks adding to pressure on prices, which have slumped almost 90% since late 2022 on oversupply and slower-than-expected growth in EV demand. The rout has led to some producers suspending capacity or delaying expansions, and many analysts still expect a surplus this year.
The refinery in Yichun was halted around mid-September, according to Jiangsu Lopal. CATL said at the time it planned to adjust output at its nearby mine, one of China’s biggest lithium deposits and which produced a low-grade ore called lepidolite.
(By Annie Lee)
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