Contemporary Amperex Technology's Yichun lithium mine confirmed to be shut down, industry insiders say the expected contraction of lithium carbonate supply may be difficult to achieve.

Can the suspension of operations at the Yichun lithium mine improve the situation of strong demand and weak supply of lithium carbonate? "The short-term shutdown does have an impact, but from the current market performance, it is mostly driven by speculative futures trading." A person from a local lithium carbonate production company in Yichun said that the actual production volume of the Ningde era Yichun project before the shutdown was not as large as imagined by the outside world, and the resumption of production after obtaining the mining permit is just a matter of time. In the medium to long term, the rise in lithium prices will stimulate the production enthusiasm of other companies, combined with product supplements from Australia and Africa, overall supply may not necessarily decrease.