AsianFin -- Shares of lithium producers fell sharply after Chinese battery powerhouse Contemporary Amperex Technology Co. Ltd. (CATL) indicated plans to restart an idled mine sooner than anticipated, intensifying pressure on already softening prices for the critical battery material.

According to a source familiar with the matter, CATL executives told employees during a meeting on Tuesday to prepare for operations to resume at the Jianxiawo site and to recall front-line workers. The source requested anonymity as the discussions were private.

The potential reopening of the Jianxiawo mine comes amid heightened competition in the lithium market, as supply growth and slowing demand from the electric vehicle sector weigh on pricing. Analysts say CATL’s move signals a strategic effort to secure long-term battery material supply while exerting downward pressure on market costs.

Lithium prices have been volatile this year, reflecting both surging demand for EV batteries and a series of production disruptions in major lithium-producing regions. The news of CATL’s accelerated mine reopening added to concerns among investors that supply may outpace demand, putting additional pressure on margins for upstream producers.