CATL(SZ:300750) Sou Hu Cai Jing·2025-08-12 12:55Core Viewpoint - The suspension of lithium mining operations by CATL in Yichun has led to a cooling effect in the capital market, with lithium stocks experiencing a decline after a previous surge [3][4]. Industry Summary - On August 11, CATL confirmed the suspension of its Yichun project due to the expiration of its mining license on August 9, and is currently applying for an extension [4]. - Following the news, A-share lithium stocks initially surged but began to retreat the next day, indicating market volatility [5]. - The China Nonferrous Metals Industry Association's lithium division has called for an end to disorderly competition and market monopolization, urging companies to rationally plan new capacity [5]. - In July, Yichun city mandated eight lithium mining companies to complete resource verification by the end of September, addressing issues of regulatory circumvention [5][6]. - The new Mineral Resources Law, effective July 1, categorizes lithium as a strategic mineral, tightening approval processes and emphasizing protective mining practices [6]. Company Summary - CATL's Yichun Times New Energy Mining Co. is among the eight companies notified regarding resource verification [7]. - CATL has diversified its resource acquisition strategies, including self-built, joint ventures, and partnerships in lithium, nickel, cobalt, and phosphate mining [10]. - The company also engages in recycling to obtain critical materials from used batteries [11]. Market Impact - The suspension of operations at the Jiangxiawo lithium mine, a major producer in Yichun, raises concerns about CATL's battery production capacity and its potential shift towards overseas lithium resources [12]. - Analysts predict that the suspension will lead to a significant increase in lithium prices, with estimates suggesting a reduction of 8% in domestic lithium supply, equating to 8,300 tons per month [13]. - Citic Securities notes that the total suspension of certain Yichun lithium mines could result in a global lithium supply shortage, as these mines account for 12.5% of global supply [13]. - Galaxy Securities anticipates that the suspension will impact domestic carbonate lithium production by nearly 12%, improving the oversupply situation in the lithium salt industry [14].