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AllAfrica
3 days ago
- Business
- AllAfrica
Lithium price jump exposes China's chokehold on supply
Global lithium prices rose significantly after China's Contemporary Amperex Technology Co. Limited (CATL), the world's largest electric vehicle (EV) battery manufacturer, halted its mine operations in Yichun, Jiangxi province. On Monday, CATL announced that it has temporarily shut down its Jianxiawo lithium mines in Yichun, known widely as 'Asia's lithium capital.' The suspension could last for at least three months, but may extend longer depending on the outcome of regulatory review processes. The announcement followed the company's failure to renew an expired mining permit on August 9. CATL said it is addressing compliance requirements with government agencies. Lithium prices have been volatile in 2025. Due to reports about the potential shutdown of the Yichun mines, the futures price of lithium carbonate increased from 58,400 yuan (US$8,124) per ton on June 23 to 80,500 yuan per ton on July 25. However, lithium prices fell again after the Guangzhou Futures Exchange set a cap on the number of daily transactions per trader on July 25. They decreased to 68,000 yuan per ton on August 5. Then speculators entered the market again. Lithium prices rebounded by 8% to 81,000 yuan per ton on Monday's trading day, as CATL formally announced its decision to halt mine operations in Yichun. Still, the mineral's prices are 86% off from their peak of 590,000 yuan per ton in November 2022. Shares of Chinese lithium miners rose on Monday on the surge in lithium prices. Tianqi Lithium Corp rose 18.2% to HK$48.48 (US$6.18), while Ganfeng Lithium gained 20.9% to HK$34. Some Chinese commentators suggested that CATL's failure to renew its mining licenses in Yichun, followed by the rebound in lithium carbonate prices, was a result of the central government's new directive to reduce market competition and boost corporate profits. 'The sharp increase in price of lithium carbonate, and also that of coking coal, was caused by the storm of Beijing's 'anti-price war' in July,' Sammy Kip, a Hubei-based columnist, says in an article published on August 9. 'However, lithium carbonate and coking coal prices corrected significantly between July 28 and August 5.' Kip says that many individual commodity speculators were still counting their losses on August 6 when the price began to surge again. He says that commodity traders are now split into two camps. One believes that the government's 'anti-price war' policy will continue to support the lithium price, while the other remains bearish. 'Those who bet on an increasing lithium price should stay vigilant as government policy can change at any time,' he says. The National Statistics Bureau (NBS) reported on July 27 that industrial profits of Chinese firms fell by 1.8% year-on-year to 3.44 trillion yuan in the first half of this year. Ganfeng Lithium stated in a stock exchange filing on July 14 that its net loss would be between 300 million and 550 million yuan for the six months ended June 30, due to declining prices for lithium salts and battery products. Lithium carbonate (Li2CO3) is a kind of lithium salt. Tianqi Lithium Corp said it might record a net profit of up to 155 million yuan in the first half of 2025, compared with a net loss of 5.2 billion yuan in the same period of last year. It stated that it benefited from a shorter price cycle for its unit's lithium concentrates. Still, it stressed that a decline in lithium product prices may adversely affect its operating results. The Politburo of the Chinese Communist Party (CCP) Central Committee, in a meeting on July 30, decided to deepen the construction of a unified national market, promote the continuous optimization of market competition order and govern disorderly competition among enterprises by laws and regulations. Chinese media referred to this as an 'anti-involution' campaign. Li Pan, an analyst at Shanghai Ganglian E-commerce Holdings ( a lso known as Mysteel Group), said that the global lithium carbonate market has remained oversupplied this year, while demand from downstream manufacturers has been sluggish. 'EV batteries and battery energy storage systems (BESS), the two largest downstream sectors, have shown a slowing demand for lithium carbonate this year,' he said. In early 2020, the price of lithium carbonate was only 40,000 yuan per ton. It increased to 590,000 yuan per ton in November 2022, driven by rapid growth in the new energy car market. In February 2023, the reported the illegal lithium mining in Yichun. It said that hundreds of villagers entered abandoned mines in search of the mineral. Each villager could earn 1,000 yuan a day through these illegal operations, compared to 1,600 yuan a month in the past. After this, market demand and the price of lithium carbonate continued to fall, while the metal's supply increased in China, Africa, Australia and Chile. Additionally, the US imposed a 100% tariff on Chinese EVs in May 2024, while the European Union imposed tariffs ranging from 17% to 45% on them in October last year. These protectionist moves hurt the demand for lithium from Chinese EV makers. Some analysts and commentators have noted that although local lithium carbonate output is declining, lithium prices are unlikely to increase significantly. Wei Xin, an analyst at China Post Securities, said the global supply of lithium carbonate equivalent (LCE) is projected to reach 1.6 million tonnes in 2025, with an overcapacity of 94,700 tons. He said this situation will continue at least until 2027. A Hebei-based columnist says in an article that CATL may have sourced s ufficient lithium carbonate from foreign suppliers before the recent surge in lithium prices. He says that although CATL halted its mining operations in Yichun, small mining firms may continue to extract the minerals illegally at night, worsening oversupply. Read: China moves to stop price wars in 'anti-involution' push
India.com
3 days ago
- Business
- India.com
Strategic Threat From Aksai Chin To Tibet? China's 2,000 KM Railway Near LAC Sparks Security Concerns In India
New Delhi: Beijing is set to begin construction on a major new railway project that poses a significant strategic threat to India. This ambitious rail line will connect China's Xinjiang region with Tibet, running dangerously close to the Line of Actual Control (LAC), the de facto border between India and China. The project has been under development for several years and is considered one of China's largest railway undertakings to date. A key concern in New Delhi is that the route will likely cut through the disputed Aksai Chin area, a region claimed by India but controlled by China since 1962. According to reports, the railway will link Hotan in Xinjiang to Shigatse in Tibet, joining the existing Lhasa-Shigatse line to form a strategic corridor nearly 2,000 kilometres long. India's worries stem from two factors: the railway's proximity to the LAC and its passage through Aksai Chin. The South China Morning Post (SCMP) reports that the railway may run near the G219 National Highway, which skirts the LAC. The project aims to establish a crucial transport network connecting northwest and southwest China, directly impacting India's national security. This rail line would enable China to swiftly deploy troops and military supplies near the LAC in the wake of a conflict. Initial construction is expected to cover the stretch from Shigatse to Pakhuktso. The line may also pass near Rutog and Pangong Lake on the Chinese-controlled side of the LAC. Hubei-based Huayuan Securities highlighted in a recent research paper that the goal is to develop a 5,000-kilometre plateau railway network centered on Lhasa by 2035. This railway will be one of the highest in the world, averaging over 4,500 metres above sea level. It will cross challenging terrains, including the Kunlun, Karakoram, Kailash and Himalayan mountain ranges. Construction will face obstacles such as glaciers, frozen rivers and permafrost. China already operates three major railways connecting Tibet, the Qinghai-Tibet, Lhasa-Shigatse and Lhasa-Nyingchi lines, but has chosen to pursue this new project, likely for strategic reasons. The Xinjiang-Tibet railway's significance lies in its direct link between northwest and southwest China. Notably, the Nyingchi line runs very close to Arunachal Pradesh, which has previously raised security concerns in India. The plan for the Xinjiang-Tibet railway began in 2008 as part of China's medium- and long-term railway network strategy, crafted by the National Development and Reform Commission, the country's premier economic planning body. Surveys and design work for the Hotan-Shigatse section started in May 2022. In April 2025, China's Ministry of Transport listed this railway among 45 major projects scheduled to start construction this year. The estimated cost stands at approximately $13 billion. China asserts that the project will enhance its transportation infrastructure. From India's perspective, the risks are clear. After China occupied Tibet, it launched a war against India in 1962 and seized control of Aksai Chin. The conflict was sparked by disputes over the G219 highway's construction and resulted in thousands of casualties. Today, Aksai Chin remains one of the most sensitive military zones between the two countries. India believes that the new railway will allow China to rapidly mobilise troops and weapons close to the LAC. Retired General J.J. Singh wrote in 2023 that China is highly protective of these strategic corridors, which makes the railway project a source of growing concern for India. As construction progresses, India's security apprehensions are expected to deepen further.
India Today
3 days ago
- Business
- India Today
China to build 5,000-km-long Xinjiang-Tibet rail link near LAC with India: Report
China is set to build the most ambitious rail link connecting Xinjiang province with Tibet, part of which will 'run near' the Line of Actual Control (LAC) with India, according to a media is expected to get underway this year on one of the world's most ambitious rail projects with the launch of a state-owned company to oversee the construction and operations of a line that will link Hotan in Xinjiang and Lhasa in Tibet, the Hong Kong-based South China Morning Post Xinjiang-Tibet Railway Company (XTRC) had been formally registered with 95 billion yuan (USD 13.2 billion) in capital and wholly owned by China State Railway Group to build the project, the report said, quoting the state-run Shanghai Securities News. "This ambitious project aims to establish a 5,000 km plateau rail framework centred on Lhasa by 2035,' Hubei-based Huayuan Securities said in a research note on project's registered capital represents initial funding, not total project costs. For example, the 1,800km Sichuan-Tibet Railway required an estimated 320 billion yuan (USD 45 billion) to build, according to the report published on Saturday."Parts of the route will also run near the China-India Line of Actual Control (LAC), the de facto border between the two countries, giving it defensive importance in a frontier area with less infrastructure than the rest of China,' the report mega infrastructure project in the route, the Xinjiang-Tibet highway, also known as G219 highway, was built through the disputed Aksai Chin area, which was a major flashpoint in the 1962 asserts Aksai Chin as an integral part of its territory based on historical claims and past Xinjiang-Tibet Railway is one of four lines planned to connect Tibet with the rest of the country, with the other services linking the western region to Qinghai, Sichuan and Yunnan provinces, the report Qinghai-Tibet line is up and running while construction continues on the other two, it Tibet region in China is well connected by air, road and rail networks. Its high-speed rail network from Lhasa stretches close to the Arunachal Pradesh border. Significantly, China's plans for the new Xinjiang-Tibet rail link come just after Beijing and New Delhi began a normalisation of relations after over four years of a freeze in ties due to the military standoff in the sprawling Eastern Ladakh. Aksai Chin is part of the relations began looking up after last year's meeting in Russia between Prime Minister Narendra Modi and Chinese President Xi Jinping on the sidelines of the BRICS is expected to attend the two-day Shanghai Cooperation Organisation (SCO) summit beginning August continues to be the focus of China's mega constructions. China recently started the construction of the world's biggest dam over the Brahmaputra River in ecologically fragile Tibet, close to Arunachal mega dam raised concerns in the lower riparian countries - India and Bangladesh. Costing about USD 170 billion, the dam is stated to be the world's biggest infrastructure defended the dam project, saying it would not have any negative impact on the downstream to the details provided in the registration of XTRC, its business scope also includes diversified operations such as real estate development, tourism, catering, accommodation and international project the plan, the train route will join the existing Lhasa-Shigatse line with a new one from Hotan to Shigatse, forming a roughly 2,000km strategic artery linking northwestern and southwestern China, the Post route will have an average elevation of over 4,500 metres, and pass through the Kunlun, Karakoram, Kailash and Himalayan mountain ranges, going through glaciers, frozen rivers and project posed many challenges as the winter temperatures on the Tibetan Plateau can plunge to -40 degrees Celsius, with oxygen levels at just 44 per cent of inland with the engineering challenges, the project team will have to cope with accelerated machinery wear, soaring logistics costs, and environmental conservation needs, the report for the Xinjiang-Tibet line dates back to 2008, when it was included in the revised 'Medium and Long-Term Railway Network Plan' approved by the National Development and Reform Commission, the country's top economic milestones include the May 2022 launch of survey and design tenders for the Hotan-Shigatse of Transport officials confirmed in April that construction was expected to get underway this year, the Post report said.- EndsTune InMust Watch IN THIS STORY#India-China
New Indian Express
3 days ago
- Business
- New Indian Express
China to build Xinjiang-Tibet rail link 'near' LAC with India: Report
BEIJING: China is set to build the most ambitious rail link connecting Xinjiang province with Tibet, part of which will "run near" the Line of Actual Control (LAC) with India, according to a media report. Work is expected to get underway this year on one of the world's most ambitious rail projects with the launch of a state-owned company to oversee the construction and operations of a line that will link Hotan in Xinjiang and Lhasa in Tibet, the Hong Kong-based South China Morning Post reported. The Xinjiang-Tibet Railway Company (XTRC) had been formally registered with 95 billion yuan (USD 13.2 billion) in capital and wholly owned by China State Railway Group to build the project, the report said, quoting the state-run Shanghai Securities News. "This ambitious project aims to establish a 5,000 km plateau rail framework centred on Lhasa by 2035," Hubei-based Huayuan Securities said in a research note on Friday. The project's registered capital represents initial funding, not total project costs. For example, the 1,800 km Sichuan-Tibet Railway required an estimated 320 billion yuan (USD 45 billion) to build, according to the report published on Saturday.
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Business Standard
4 days ago
- Business
- Business Standard
China to build Xinjiang-Tibet rail link 'near' LAC with India: Report
China is set to build the most ambitious rail link connecting Xinjiang province with Tibet, part of which will run near the Line of Actual Control (LAC) with India, according to a media report. Work is expected to get underway this year on one of the world's most ambitious rail projects with the launch of a state-owned company to oversee the construction and operations of a line that will link Hotan in Xinjiang and Lhasa in Tibet, the Hong Kong-based South China Morning Post reported. The Xinjiang-Tibet Railway Company (XTRC) had been formally registered with 95 billion yuan ($13.2 billion) in capital and wholly owned by China State Railway Group to build the project, the report said, quoting the state-run Shanghai Securities News. "This ambitious project aims to establish a 5,000 km plateau rail framework centred on Lhasa by 2035, Hubei-based Huayuan Securities said in a research note on Friday. The project's registered capital represents initial funding, not total project costs. For example, the 1,800km Sichuan-Tibet Railway required an estimated 320 billion yuan ($45 billion) to build, according to the report published on Saturday. "Parts of the route will also run near the China-India Line of Actual Control (LAC), the de facto border between the two countries, giving it defensive importance in a frontier area with less infrastructure than the rest of China, the report said. China's mega infrastructure project in the route, the Xinjiang-Tibet highway, also known as G219 highway, was built through the disputed Aksai Chin area, which was a major flashpoint in the 1962 war. India asserts Aksai Chin as an integral part of its territory based on historical claims and past treaties. The Xinjiang-Tibet Railway is one of four lines planned to connect Tibet with the rest of the country, with the other services linking the western region to Qinghai, Sichuan and Yunnan provinces, the report said. The Qinghai-Tibet line is up and running while construction continues on the other two, it said. The Tibet region in China is well connected by air, road and rail networks. Its high-speed rail network from Lhasa stretches close to the Arunachal Pradesh border. Significantly, China's plans for the new Xinjiang-Tibet rail link come just after Beijing and New Delhi began a normalisation of relations after over four years of a freeze in ties due to the military standoff in the sprawling Eastern Ladakh. Aksai Chin is part of the region. The relations began looking up after last year's meeting in Russia between Prime Minister Narendra Modi and Chinese President Xi Jinping on the sidelines of the BRICS summit. Modi is expected to attend the two-day Shanghai Cooperation Organisation (SCO) summit beginning August 31. Tibet continues to be the focus of China's mega constructions. China recently started the construction of the world's biggest dam over the Brahmaputra River in ecologically fragile Tibet, close to Arunachal Pradesh. The mega dam raised concerns in the lower riparian countries - India and Bangladesh. Costing about $170 billion, the dam is stated to be the world's biggest infrastructure project. China defended the dam project, saying it would not have any negative impact on the downstream countries. According to the details provided in the registration of XTRC, its business scope also includes diversified operations such as real estate development, tourism, catering, accommodation and international project contracting. Under the plan, the train route will join the existing Lhasa-Shigatse line with a new one from Hotan to Shigatse, forming a roughly 2,000km strategic artery linking northwestern and southwestern China, the Post reported. The route will have an average elevation of over 4,500 metres, and pass through the Kunlun, Karakoram, Kailash and Himalayan mountain ranges, going through glaciers, frozen rivers and permafrost. The project posed many challenges as the winter temperatures on the Tibetan Plateau can plunge to -40 degrees Celsius, with oxygen levels at just 44 per cent of inland regions. Along with the engineering challenges, the project team will have to cope with accelerated machinery wear, soaring logistics costs, and environmental conservation needs, the report said. Planning for the Xinjiang-Tibet line dates back to 2008, when it was included in the revised Medium and Long-Term Railway Network Plan approved by the National Development and Reform Commission, the country's top economic planner. Key milestones include the May 2022 launch of survey and design tenders for the Hotan-Shigatse section. Ministry of Transport officials confirmed in April that construction was expected to get underway this year, the Post report said.
