Core Viewpoint - The confirmation of the shutdown of the Jiangxi mining site by CATL has significantly impacted the lithium market, leading to a surge in lithium carbonate futures prices and affecting the stock performance of major lithium companies [1][4][5]. Group 1: Market Reaction - On August 11, lithium carbonate futures opened with a limit increase of 8%, reaching 81,000 CNY/ton, reflecting heightened market sentiment [1]. - On August 12, the price of lithium carbonate continued to rise, peaking at 88,840 CNY/ton, with a nearly 10% increase [1][2]. - Despite the surge in futures prices, major lithium stocks such as Tianqi Lithium and Ganfeng Lithium experienced declines of 7.76% and 5.76%, respectively, following the previous day's gains [1][2]. Group 2: Supply Chain Implications - The Jiangxi mining site is a major source of lithium mica, contributing approximately 15,000 tons of lithium carbonate equivalent (LCE) annually, with CATL's operations accounting for about half of this supply [5][8]. - The shutdown of the mining site indicates that the release of lithium supply may be more challenging than previously anticipated, leading to increased marginal costs in the industry [5][8]. - The overall global lithium resource supply in 2023 is estimated at 104.78 million tons of LCE, with lithium mica accounting for about 7% of the total supply [8]. Group 3: Industry Developments - The China Nonferrous Metals Industry Association's lithium division has called for enhanced industry self-discipline to prevent excessive competition and ensure supply chain security [3]. - There are ongoing concerns regarding the renewal of mining licenses among major lithium producers, which could further complicate supply dynamics [7][8]. - The market is currently observing a trend of rising lithium prices, but analysts caution that the sustainability of this trend remains uncertain due to potential restarts of high-cost overseas mines [6][7].