Chinese miner Zangge Mining, controlled by Zijin Mining, suspended lithium production in Qinghai province due to non-compliance with local regulations. The company aimed to produce 11,000 tonnes of lithium carbonate this year, but operations are on hold pending government approval to resume production.

The uncertainty surrounding Zangge Mining’s production halt has caused volatility in the lithium market, with prices increasing significantly. The news led to a surge in lithium carbonate futures prices on the Guangzhou futures exchange, boosting market sentiment for the crucial electric vehicle battery material.

Despite the production suspension, Zangge Mining expects minimal financial impact and plans to produce around 5,350 tonnes of lithium in the first half of the year. Zijin Mining, which acquired a controlling stake in the company in 2025, aims to expand its presence in the lithium market through this partnership.

Read more at Yahoo Finance: Zangge halts lithium production in Chinese province of Qinghai