Core Viewpoint - Lithium stocks are experiencing an upward trend, driven by expectations of a supply shortage in the global lithium market by 2027, which may lead to price increases for lithium carbonate [1] Group 1: Market Performance - Ganfeng Lithium (01772) rose by 4.27% to HKD 51.8, while Tianqi Lithium (09696) increased by 3.31% to HKD 48 [1] - Lithium carbonate futures for the 2605 contract saw a rise of over 3%, peaking at CNY 96,800 per ton [1] Group 2: Supply and Demand Dynamics - Huatai Securities predicts a potential supply shortage in the global lithium market by 2027, which could push prices above CNY 100,000 per ton in the second half of 2026 [1] - If a sustained shortage occurs in 2027, lithium carbonate prices could further increase to CNY 120,000 per ton due to low sensitivity of downstream sectors to price changes [1] Group 3: Industry Trends - Three significant changes in the industry have been observed: strong production resilience on the supply side, accelerated inventory reduction driven by demand, and a prolonged capital expenditure bottom for Chinese enterprises over the past three years [1] - Global sales of new energy vehicles are projected to reach 5.4 million units in Q3 2025, a year-on-year increase of 23%, while energy storage battery shipments are expected to hit 170 GWh, up 98.5% year-on-year [1] - The production rhythm for lithium salt projects is anticipated to slow down from 2026 to 2028, indicating that the lithium cycle's turning point is approaching [1]