Chinese Miner Zangge Halted Lithium Production in Qinghai Province Amid Compliance Concerns

Zangge Mining has halted lithium production in Qinghai province, China, following directives from local government officials. The miner received a notice demanding an immediate stop to non-compliant mining activities, with the specific reasons not disclosed. Operations can only recommence upon receiving approval from the local government. The production halt has contributed to volatility in the lithium market, leading to a significant increase in lithium prices. Despite the production halt, Zangge Mining anticipates that the impact on its financial results will be minimal, with lithium production expected to reach 5,350t in the first half of the year.

Title: Zangge Mining Halts Lithium Production in Qinghai Province

Chinese lithium producer Zangge Mining (000408.SZ) has halted lithium production at a mine in Qinghai province following directives from local government officials [1]. The company received a notice from Haixi prefecture authorities demanding an immediate stop to non-compliant mining activities [2]. The specific reasons for non-compliance were not disclosed in the filing. Operations can only recommence upon receiving approval from the local government.

Zangge Mining had projected its lithium carbonate production to reach 11,000 metric tons this year. However, due to the production halt, the company expects to produce approximately 5,350 metric tons in the first half of the year [3]. The company stated that it is not yet possible to determine the specific time of Zangge Lithium's resumption of production, making the impact on the company unpredictable for the time being [1].

The production halt has contributed to volatility in the lithium market, leading to a significant increase in lithium prices. The most actively traded lithium carbonate futures contract on the Guangzhou futures exchange saw a sharp increase to nearly a three-month high following the news of the production halt [2]. Despite the production halt, Zangge Mining anticipates that the impact on its financial results will be minimal.

Zijin Mining, a state-owned giant, acquired a controlling stake in Zangge Mining in May 2025 as part of its strategy to expand in the lithium market [3]. The news has positively influenced market sentiment for the critical electric vehicle battery material.

References

[1] Reuters. "Chinese miner Zangge halts lithium production in Qinghai province." July 17, 2025. https://www.reuters.com/markets/commodities/chinese-miner-zangge-halts-lithium-production-subsidiary-after-govt-order-2025-07-17/
[2] Yahoo Finance. "Zangge halts lithium production in Chinese province of Qinghai." July 17, 2025. https://finance.yahoo.com/news/zangge-halts-lithium-production-chinese-145601579.html
[3] Mining Technology. "Zangge Mining production halt." July 17, 2025. https://www.mining-technology.com/news/zangge-mining-production-halt/