Lithium prices have sunk to a five-month low as the return of previously idled mine capacity triggered fears of a massive market oversupply. The project contains an estimated 960 million tonnes of porcelain stone ore, equivalent to roughly 2.66 million tonnes of lithium oxide, and is capable of producing 100,000 to 150,000 tonnes of lithium carbonate equivalent (LCE) annually. At full production, Jianxiawo supplies roughly 3% of global lithium output and between 8% and 10% of China’s domestic production. Global lithium production is projected to grow 26% Y/Y to reach 2.16 million tons in 2026 and 27% in 2027 to hit 2.74 million tons. Supply is expected to continue expanding over the next two years, reaching 3.34 million tons in 2028 before hitting 4.02 million tons in 2029.