Contemporary Amperex Technology Co., Limited (CATL), the world's largest battery manufacturer, confirmed on Monday, August 11, that it had shut down its mine in Yichun, southeastern China, as it seeks to renew an expired operating license. This mine is far from insignificant: It accounts for around 6% of global production. Lithium prices soared 8% at the close, while the share prices of international mining companies also surged. The fate of this mine had been closely monitored for several weeks due to speculation that Chinese authorities would not renew its license.

In 2024, CATL controlled between 35% and 40% of the global market for batteries used in electric vehicles, supplying most Chinese automakers and many foreign manufacturers such as Tesla, Toyota and BMW. Lithium is not a rare earth element, but it is a strategic, very light metal, notably used in lithium-ion batteries that power smartphones, laptops and, crucially, electric vehicles. In just a few years, it has become a key metal in the global race toward the energy transition.

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