Lithium Prices Surge in China After 27 Mining Licenses Revoked
By Reuters | 17 Dec, 2025

Jiangxi Province's plan to cancel 27 mostly expired mining licenses in the lithium center of Yichun prompted a 7.61% jump in lithium futures.

Lithium prices in China surged on Wednesday after the natural resource authority of the country’s main lithium-producing hub said it would revoke 27 mining licences.

The most-active lithium carbonate contract on the Guangzhou Futures Exchange jumped to 109,860 yuan ($15,592.27) a metric ton, its highest since June 2024, earlier in the session, before ending the day up 7.61% at 108,620 yuan.

The Bureau of Natural Resources of Yichun, a major lithium centre in Jiangxi province, said it planned to cancel 27 mining permits after a public consultation period that will end on January 22, according to a notice published on its official website on Friday.

All of the licences had already expired, some more than a decade ago, and most were registered for ceramic clay or limestone mining, according to the list.

One permit identified as a lithium-bearing ceramic stone mine was held by Jiangxi Special Electric Motor, which said on Wednesday that it had submitted an objection to the local authorities. 

The permit expired on September 15, 2024, according to the bureau.

The Yichun natural resources bureau did not immediately respond to an emailed request for comment.

The licence cancellations would have little impact on supply, as none of the revoked permits covered operating mines, analysts at Chinese broker Galaxy Futures said in a note.

However, the news stirred worries among investors over future supply, driving up the price of lithium carbonate.

The latest move follows a series of licence clean-ups in Yichun since September. The bureau last revoked six mining permits on November 27.

The price of lithium carbonate has been rising since August when mining at Jianxiawo mine held by CATL was suspended following an expiry of its mining license, with booming demand from the energy storage sector yielding additional support.

($1 = 7.0458 Chinese yuan renminbi)

(Reporting by Dylan Duan and Lewis JacksonEditing by Tomasz Janowski)