A Zijin Mining sign is illuminated at the company's booth, at the Prospectors and Developers Association of Canada (PDAC) annual mining conference in Toronto, Ontario, Canada March 3, 2025.
Zangge Mining, a subsidiary of the state-owned Zijin Mining, had projected an annual output of 11,000 metric tons of lithium carbonate from the affected unit for 2025. For the first half of the year, the company reported production of approximately 5,350 metric tons. The company stated that operations can resume only after addressing compliance requirements and obtaining approval from local authorities. Zangge is actively working to meet these standards and plans to submit an application for resumption.
The company noted: “Since it is not yet possible to determine the specific time of Zangge Lithium’s resumption of production, the impact on the company cannot be predicted for the time being.” Despite the halt, Zangge anticipates that the suspension will have a limited effect on its overall financial performance.
The announcement coincided with a notable market response, as the most active lithium carbonate futures contract on the Guangzhou Futures Exchange rose by more than 4% during afternoon trading, starting at 1:30 p.m. local time (0550 GMT). This increase reflects heightened market sensitivity to supply changes in the lithium sector, a critical component for electric vehicle batteries and other energy storage solutions.
Zangge Mining’s operations in Qinghai, a mineral-rich region, are significant for its lithium carbonate production, which supports the growing demand for battery materials. The company is committed to resolving the compliance issues promptly to minimize disruptions and continue contributing to the regional and global lithium supply chain. The temporary halt underscores the importance of regulatory adherence in maintaining sustainable mining practices.
