[SMM Analysis] What Is the Actual Impact of the 27 Mining Rights Set for Deregistration by Yichun Natural Resources Bureau

Today, the SMM battery-grade lithium carbonate index price stands at 97,171 yuan per tonne, an increase of 1,209 yuan per tonne from the previous working day. Battery-grade lithium carbonate is priced between 94,600 and 99,500 yuan per tonne, with an average price of 97,050 yuan per tonne, up 1,200 yuan per tonne from the previous working day. Industrial-grade lithium carbonate is priced between 93,300 and 95,600 yuan per tonne, averaging 94,450 yuan per tonne, a rise of 1,100 yuan per tonne from the previous working day.

The main lithium carbonate futures contract saw a significant increase today, rising over 8% intraday. This round of market movement is primarily driven by sentiment, with the direct trigger being the notice regarding the deregistration of 27 mining rights issued by the Jiangxi Yichun Natural Resources Bureau. The notice sparked market concerns about lithium supply. However, it should be noted that the abnormal price increase mainly reflects emotional fluctuations and is weakly connected to industry fundamentals.

In terms of actual market transactions, the current price level has clearly exceeded the acceptable range for most downstream material manufacturers. Market transactions are primarily supported by rigid demand purchases from some companies. The irrational surge in the futures market shows a certain deviation from spot market fundamentals, prompting a call for all parties to rationally assess the actual supply and demand situation.

Since June 16, 2025, the Yichun Natural Resources Bureau has issued four announcements regarding the deregistration of over 60 mining rights. The list shows that these mines cover various types including porcelain clay, feldspar, kaolin, granite, and limestone, and are not limited to lithium-bearing porcelain clay mines. The validity periods of these mining rights ended variously between 2009 and 2024. This deregistration is a data clean-up operation based on regulations including the "Mineral Resources Law of the People's Republic of China," the "Measures for the Administration of Mineral Resource Mining Registration," the "Ministry of Natural Resources Notice on Further Improving the Administration of Mineral Resource Exploration and Mining Registration," and the "Notice on the Clean-up Work of Data for Expired Exploration Licenses and Mining Licenses."

The involved lithium-bearing porcelain clay mines, such as Shiziling, had already stopped production before 2025 and no longer supply lithium resources to the market. Therefore, they have virtually no impact on the current and future supply of lithium resources and lithium chemical products.

(Note: In the announcement, the terms "mining right" and "mining license" refer to essentially the same thing, with the former being a more detailed expression in the official notice.)