Latest News

Chinese lithium miner calls for stricter regulation of the industry

Qinghai Salt Lake, a Chinese lithium producer, said that on Thursday compliance investigations were being conducted in Qinghai Province into the mining licenses of the metal for electric vehicle batteries. This is part of a trend towards stricter supervision of the sector.

In response to investor inquiries, Qinghai Salt Lake responded in a filing made to the Shenzhen Stock Exchange that the investigations into mining permits are part of the tougher approach being taken by the regulators.

Qinghai Salt Lake's own mining operation is "fully compliant and stable," according to the company.

Local officials in July ordered Zangge Mining, a mining company in Qinghai Province to close a unit for "noncompliance". In August, Contemporary Amperex Technology said that it had closed a unit in Jiangxi Province due to an expired license.

Although provincial officials have not provided many details, the crackdown coincides with a broader anti-overcapacity campaign in Chinese industry which was launched by President Xi Jinping in early July.

In August, the prospect of a lower mining output led to a massive rally in lithium. The prices have fallen since then, but a new miner has been granted a license to operate in the Jiangxi Province lithium hub, Yichun. This eased fears of further production being suspended. Reporting by Amy Lv in Beijing and Lewis Jackson; Editing by Jacqueline Wong, Tom Hogue

(source: Reuters)