Lithium Futures Drop 10% to 157,000 Yuan After CATL Mine Approval
SGML•Lithium carbonate futures in China dropped about 10% over two sessions to 157,000 yuan per tonne after CATL’s Jianxiawo mine secured land use pre-approval through June 2029. Sigma Lithium Corp shares have fallen 14.8% over the past 30 days as battery metal miners retrench on anticipated supply surge.
1. Lithium Futures Slide on Supply Speculation
Lithium carbonate futures in China fell about 10% over two trading sessions to 157,000 yuan per tonne, marking a 10-week low as traders priced in a potential surge in supply from a major new source.
2. CATL’s Jianxiawo Mine Gains Pre-Approval
The Jianxiawo lithium mine received a project land use pre-approval and site selection opinion valid from June 17, 2026, through June 17, 2029, enabling potential annual output of roughly 46,000 tons of lithium carbonate, equivalent to about 3% of global supply.
3. Sector-Wide Pullback Hits Miners
Major lithium producers saw share declines over the past month, including Sigma Lithium Corp’s 14.8% drop, Lithium Americas’ 15.2%, Atlas Lithium’s 10.2%, Albemarle’s 14.8% and SQM’s 5.6%, as investors adjust expectations for future supply.
