JIANGTE MOTOR(SZ:002176) Xin Lang Cai Jing·2025-12-18 02:04Core Viewpoint - The recent cancellation of expired mining rights in Yichun has led to a significant surge in lithium carbonate futures, indicating deeper market concerns about long-term lithium resource supply rather than just short-term supply-demand dynamics [3][6][10]. Industry Summary - Yichun City announced the cancellation of 27 mining rights, including those related to lithium-bearing minerals, which has raised concerns about the future supply of lithium resources [6][14]. - The Yifeng County Shiziling mining area, owned by Jiangte Electric, is a key lithium resource for the company, contributing 57,300 tons of Li₂O, which is a significant portion of its total reserves [6][10]. - The new Mineral Resources Law, effective from July 2025, will classify lithium as a strategic independent mineral, marking a shift towards stricter regulatory compliance in lithium resource development [7][14]. Supply Chain Implications - The new law will centralize mining rights approval to the Ministry of Natural Resources, leading to delays in new capacity releases and a tightening of the approval process [7][14]. - The minimum lithium oxide grade for mining has been raised to 0.4%, which will restrict low-grade lithium production and impact many small mining companies reliant on lower-grade resources [8][15]. - The industry is undergoing a cleanup of non-compliant operations, with the recent cancellations reflecting a broader trend towards regulatory compliance [9][16]. Financial Impact - The tax burden on lithium mining companies will increase significantly, with the resource tax for standalone lithium mining set at 15%, compared to previous rates of 3.25%-6.5% for other minerals [9][16]. - Compliance costs related to mining rights verification and resource assessment are expected to rise, further impacting the financial landscape for lithium producers [10][17].