Prices of lithium carbonate futures in China fell more than 7% today to a more than one-month low.

The potential reopening of the massive mine adds a fresh blow to the sector, which has been struggling with a glut following weaker-than-anticipated growth in demand for electric vehicles.

Securities Times’ report on the resumption of production at CATL’s lithium mine broke during premarket trading in the US yesterday and sent US-listed shares of lithium miners lower on easing supply concerns.

Shares of Albemarle Corp, the world’s largest producer of lithium for rechargeable batteries, and US-listed shares of Sigma Lithium Corp ended 11.5% and 6.9% lower yesterday.

In Sydney, Pilbara Minerals shed as much as 16.7%, losing the most among Australia-listed lithium miners, while IGO and Liontown Resources shed as much as 12.7% and 15.8%, respectively.

The lithium miners were also among the top drags on the S&P/ASX 200 benchmark index, which was largely flat, as of 1.26pm.

Meanwhile, China-listed shares Of Tianqi Lithium and Ganfeng Lithium opened about 5% down.

CATL had suspended operations at the Jianxiawo lithium mine following a licence expiry on Aug 9, which had led to a surge in lithium futures prices and the share prices of lithium miners.