China has just delivered breaking news that sent shockwaves across global markets, and Australia has emerged as one of the hardest-hit regions.

On September 9, CATL (Contemporary Amperex Technology) confirmed it will resume operations at its massive lithium mine in Yichun, Jiangxi Province. This giant mine accounts for around 8% of global lithium supply. CATL executives notified staff at a Tuesday meeting to prepare for a return to work and recalled frontline workers back to the site.

Lithium, a critical raw material for electric vehicle batteries and a key driver in the green energy transition, is among the world’s most sought-after resources. Its market supply and demand dynamics are closely monitored worldwide.

CATL’s Jianshiwo lithium mine had suspended operations on August 9 due to an expired mining license. The shutdown had immediately triggered a surge in lithium futures prices and lifted the share prices of global mining companies. At the time, traders were so eager for information that they even dispatched drones to fly over the mine for visual updates.

However, once news broke overnight that production would restart, global mining shares were hammered, sparking a sell-off across major stock exchanges.

In the U.S., lithium-linked companies saw sharp losses: SQM fell 8.8%, and Albemarle plunged 11%.

Australia, a mining powerhouse with abundant lithium, nickel, and cobalt resources—most of which are exported to China for processing—suffered particularly heavy losses.

When markets opened this morning, Australian lithium stocks were hit hard. Pilbara Minerals fell 15%, Liontown plunged nearly 17%, IGO lost 13.5%, Rio Tinto dropped 1.7%, and BHP also fell 1.7%. Combined, these losses wiped out roughly A$8.4 billion in market value.

Given the cyclical nature of the lithium market, prices are highly sensitive to supply shifts. As one of the world’s top lithium suppliers, any production changes from CATL have an outsized impact on supply-demand balance, sparking dramatic swings in both prices and equities. The resumption of production is expected to unleash a flood of new supply, which could drive lithium prices down sharply.

Notably, the news of CATL’s restart came just four days after Australian Prime Minister Anthony Albanese spoke with U.S. President Donald Trump about critical minerals, security, and trade. Albanese had earlier announced in April that Australia would begin building strategic reserves of key minerals to safeguard against potential supply risks.

Still, CATL’s resumption highlights just how vulnerable Australia remains within the global lithium supply chain.

The restart of CATL’s Yichun lithium mine is not only set to reshape global supply and pricing for lithium but has already dealt a massive blow to mining shares worldwide and the Australian stock market in particular. The lithium market will remain one to watch closely in the months ahead.