Core Insights - Latin American countries, holding over half of the world's lithium resources, are poised to improve their lagging investment situation in lithium extraction due to favorable global market conditions and government policy adjustments [1][2] Industry Overview - The global lithium demand has surged from 29,000 tons per year a decade ago to an expected 242,000 tons per year by 2024, with the battery sector's share increasing from 37% to 89% [1] - Latin America holds 53% of the world's total lithium resources, yet its actual lithium production in 2024 is projected to be only 77,000 tons, accounting for 32% of the global output of 240,000 tons [1] Resource Characteristics - The "Lithium Triangle" comprising Argentina, Chile, and Bolivia primarily utilizes lithium brine resources, while Brazil and Mexico focus on lithium ores [2] - The share of lithium spodumene in global lithium production has increased from 48% to 65% over the past decade, attributed to its high lithium content and shorter project timelines [2] Investment Climate - Argentina has become the most open to private investment in the lithium sector, with recent policy changes under President Milei, including tax incentives for investments over $200 million [3] - Chile's new lithium policy aims to attract investment while maintaining state control over strategic salt flats, allowing private companies to develop other sites independently [3] Project Developments - Significant projects include Rio Tinto's $2.7 billion project approved under Argentina's new investment framework and a $3 billion collaboration between Chile's state mining company and Rio Tinto [3] - Bolivia's state-owned YLB company has commenced production at a lithium carbonate plant with an annual capacity of 15,000 tons [3] Future Outlook - If global lithium supply shifts from surplus to shortage, it will further incentivize lithium development in Latin America [4] - Challenges in increasing global lithium supply include technological and quality issues, with warnings that if brine and hard rock projects do not overcome bottlenecks, lithium prices may rise again [4]

Investment Rating - The report recommends a "Buy" rating for the industry, predicting that the industry index will outperform the Shanghai Composite Index by 10% or more in the next six months [20]. Core Insights - The total lithium carbonate production for Q3 2025 is approximately 8,300 tons, with an expected annual production exceeding 30,000 tons [1]. - The unit cash operating cost for lithium carbonate in Q3 2025 is $6,285 per ton, reflecting a 3% increase quarter-over-quarter [3]. - The average realized price for lithium carbonate in Q3 2025 is approximately $7,522 per ton, with current market prices around $9,200 per ton [4]. - The PPG project is expected to have an annual production capacity of up to 150,000 tons of LCE, with a post-tax net present value of $8.1 billion and an internal rate of return of 33% based on a lithium carbonate price of $18,000 per ton [5][8]. - The company reported a net loss of $64.5 million in Q3 2025, significantly higher than the $2.4 million loss in the same period last year, primarily due to increased losses from the Cauchari-Olaroz project [13]. Summary by Sections Production and Sales - Q3 2025 lithium carbonate production is approximately 8,300 tons, a 2% decrease from the previous quarter, with a total production of about 24,000 tons for the first three quarters of 2025 [1]. - Q2 2025 total shipments were approximately 7,775 tons, reflecting a 10% decrease quarter-over-quarter [2]. Operating Costs - The unit total cash cost for lithium carbonate in Q3 2025 is $6,514 per ton, a 2% increase from the previous quarter [3]. Pricing - The average realized price for lithium carbonate in Q3 2025 is approximately $7,522 per ton, with market prices reflecting a recovery since July [4]. Expansion Plans - The Cauchari-Olaroz project is advancing a Phase II expansion plan, considering an increase of 45,000 tons/year in lithium carbonate capacity [10]. - The PPG project has a proven and probable resource of 15.1 million tons of LCE, positioning it among the largest undeveloped lithium brine resources [8]. Financial Performance - As of September 30, 2025, the company holds $64 million in cash and cash equivalents, with total assets of $1,078.7 million and total liabilities of $251.7 million [14][15].

Report Summary 1. Report Industry Investment Rating - No industry investment rating is provided in the report [1] 2. Core View of the Report - The current supply and demand of lithium carbonate are both strong. The news of the resumption of lithium mines in Jiangxi is inconsistent, and the production of lithium carbonate remains high. High prices have intensified the wait - and - see sentiment among downstream players. The peak of power demand may be approaching. If the weakening of demand is verified, there is still room for the price to decline. It is expected that the lithium price will fluctuate widely. The report suggests investors to take a wait - and - see approach [1] 3. Summary by Relevant Information 3.1 Lithium Carbonate Futures Market - **Prices**: On November 7, 2025, the closing prices of near - month, continuous - one, continuous - two, and continuous - three contracts of lithium carbonate futures all increased compared to the previous period. For example, the near - month contract closing price was 80,460 yuan/ton, up 2,580 yuan from the previous period [1] - **Trading Volume and Open Interest**: The trading volume of the active contract of lithium carbonate futures was 810,655 hands (+228,622), and the open interest was 490,951 hands (+18,968) [1] - **Inventory**: The inventory was 27,332 tons, an increase of 912 tons [1] - **Spreads**: The spread between near - month and continuous - one contracts was - 1,700 yuan, up 780 yuan; the spread between continuous - one and continuous - two contracts was 60 yuan, down 60 yuan; the spread between continuous - two and continuous - three contracts was 0 yuan, up 300 yuan; the basis (SMM battery - grade lithium carbonate average price - lithium carbonate active contract closing price) was - 1,900 yuan, down 1,800 yuan [1] 3.2 Lithium - Related Raw Material Prices - **Lithium Ore**: The average prices of lithium spodumene concentrate (6%, CIF China), lithium mica (Li2O: 1.5% - 2.0%), lithium mica (Li2O: 2.0% - 2.5%), phospho - lithium - aluminum stone (Li2O: 6% - 7%), and phospho - lithium - aluminum stone (Li2O: 7% - 8%) all increased [1] - **Lithium Compounds**: The average prices of battery - grade lithium carbonate (99.5%/domestic), industrial - grade lithium carbonate (99.2%/domestic), and some types of lithium hydroxide changed slightly. The price of battery - grade lithium hydroxide decreased by 100 yuan compared to the previous period, and the price difference between battery - grade lithium hydroxide and battery - grade lithium carbonate was - 4,820 yuan, down 100 yuan [1] - **Other Materials**: The prices of some materials such as ternary precursors, ternary materials, and lithium iron phosphate changed little, while the price of cobalt metal increased [1] 3.3 Lithium Carbonate Inventory - The total SMM lithium carbonate inventory was 123,953 tons, a decrease of 3,405 tons compared to the previous period. The inventories of smelters, downstream, and other sectors all decreased [1] 3.4 Industry News - Australian listed company Clean TeQ Water signed a contract worth about 12.5 million US dollars (about 19.2 million Australian dollars) with Rio Tinto's subsidiary Rincon Mining to provide engineering design, procurement, and supply services for the Rancoin project in Argentina. The project will use Clean TeQ's patented CLEAN - IX mobile lithium ion exchange (MBIX) technology, which is expected to be completed in three years [1] 3.5 Supply and Demand Analysis - **Supply**: The production of lithium carbonate increased last week, and the production of lithium carbonate from various raw materials all rose [1] - **Demand**: The production of lithium carbonate products, ternary materials, and power batteries increased last week. In November, the production of cobalt - lithium products increased, while the production of lithium carbonate decreased. In October, the year - on - year and month - on - month growth rates of new energy vehicle production and sales slowed down, 3C shipments were average, and the production of energy - storage batteries increased in November [1]

Core Viewpoint - Ganfeng Lithium (002460)(01772) saw a stock price increase of over 6%, reaching HKD 50.95, with a trading volume of HKD 727 million, following MSCI's announcement of index changes that will include Ganfeng Lithium in the MSCI China Index effective November 24, 2025 [1] Financial Performance - In the first three quarters of the year, Ganfeng Lithium reported revenue of approximately CNY 14.6 billion, representing a year-on-year growth of about 5% [1] - The company achieved a net profit attributable to shareholders of CNY 25.52 million, a significant turnaround from a loss of CNY 640 million in the same period last year [1] Market Outlook - Huatai Securities noted that the increase in lithium prices has driven a substantial quarter-on-quarter performance improvement for the company [1] - Looking ahead, as Ganfeng Lithium gradually increases its lithium resource output, contributions from downstream energy storage and solid-state battery developments are expected to enhance performance, indicating a positive outlook for the company's diversified growth [1]

Core Viewpoint - The company has significant potential for capacity enhancement in lithium production, focusing on improving product quality and production efficiency [2]. Group 1: Company Production Capacity - Blueco Lithium currently has a production capacity of 10,000 tons of industrial-grade and 20,000 tons of battery-grade lithium carbonate, with a total annual output stabilizing at approximately 40,000 tons [2]. - The company has undergone recent technological iterations and modifications to enhance production capabilities [2]. Group 2: Future Focus Areas - The company aims to improve key indicators such as recovery rates, indicating room for further enhancement in production processes [2]. - Future efforts will concentrate on refining product quality and optimizing production efficiency [2].

Core Viewpoint - The company has received approval to resume lithium resource development activities, which is expected to enhance its operational capacity and market position in the lithium sector [1] Group 1 - The company's wholly-owned subsidiary, Geermu Cangge Potash Co., Ltd., has been granted permission by the Haixi Prefecture Natural Resources Bureau and the Haixi Salt Lake Management Bureau to resume lithium resource development [1] - The approval document specifies that Geermu Cangge Lithium Industry Co., Ltd., another wholly-owned subsidiary, will officially resume production on October 11, 2025 [1]

Core Viewpoint - The U.S. government has announced its intention to acquire a minority stake in Lithium Americas, which is developing the Thacker Pass lithium project in Nevada, significantly impacting the company's stock price and the U.S. lithium supply chain [1][2][6]. Group 1: Government Involvement - U.S. Energy Secretary Chris Wright stated that the government will hold a 5% stake in Lithium Americas and its Thacker Pass project, which is expected to become a major source of lithium in the U.S. [2][6] - Following the announcement, Lithium Americas' stock surged over 40% in after-hours trading, later stabilizing at a 34.68% increase, with a year-to-date rise of 92% [2][6]. Group 2: Thacker Pass Project - The Thacker Pass lithium project is recognized as one of the largest known lithium deposits in the U.S., with operations expected to commence by the end of 2027 [1][6][8]. - The project aims to produce approximately 40,000 tons of battery-grade lithium carbonate annually, sufficient to power up to 800,000 electric vehicles [6]. Group 3: Strategic Importance - The Thacker Pass project is seen as a critical component in building a domestic lithium supply chain, aligning with the U.S. government's strategy to increase lithium production [8]. - The U.S. government has previously invested in other critical sectors, highlighting the strategic importance of lithium for national security [7]. Group 4: Ganfeng Lithium's Involvement - Ganfeng Lithium was previously the largest shareholder of Lithium Americas, holding a 19.9% stake through its subsidiary, but has since reduced its ownership to 6.86% as of 2024 [1][9]. - Ganfeng Lithium has a diversified portfolio of lithium projects globally, including significant resources in Australia and Argentina, totaling over 33.81 million tons of lithium carbonate equivalent (LCE) [9].

Core Insights - The article highlights the upcoming CINE2025 Solid-State Battery Exhibition and Industry Annual Conference scheduled for November 6-8, 2025, in Guangzhou, which aims to showcase advancements in solid-state battery technology and industry developments [2][3]. Event Details - The event is organized by Qidian Solid-State Battery, Qidian Lithium Battery, and SSBA Solid-State Battery Alliance, with Ru Tian Technology as the main sponsor [2]. - The scale of the event includes over 200 exhibitors, more than 2,000 participating companies, and around 20,000 professional attendees [2]. - Concurrent activities include the 2025 Qidian Solid-State Battery Golden Ding Award Ceremony and the SSBA Solid-State Battery Industry Alliance Council [2]. Industry Developments - Tibet Mining Development Co., Ltd. announced the successful completion of a 120-hour functional assessment for its lithium carbonate project at the Zabuye Salt Lake, marking the start of large-scale production [3]. - The Zabuye Salt Lake is noted as the world's third-largest and Asia's largest lithium salt lake, with proven lithium reserves of 1.841 million tons and a lithium concentration second only to Chile's Atacama Salt Lake [3]. - The project utilizes a "membrane separation + MVR" process, significantly reducing energy consumption and carbon emissions while shortening the production cycle from 18 months to 3 months [3]. - The launch of this project is expected to enhance China's lithium resource self-sufficiency, as Tibet's salt lake lithium resources account for 33% of the national total [3].

Core Viewpoint - The discovery of the Asian lithium belt is expected to have a positive impact on the company's future development, particularly in securing stable lithium resources from the Zabuye salt lake [2]. Group 1 - The Zabuye salt lake provides the company with a long-term and stable lithium resource guarantee [2]. - The company is actively advancing the progress of its Phase II project [2].

Core Viewpoint - Tibet Mining (000762.SZ) emphasizes the long-term stable lithium resource assurance provided by the Zabuye Salt Lake and is actively advancing the progress of its Phase II project [1] Company Summary - Tibet Mining is focusing on the Zabuye Salt Lake for its lithium resource needs, which is crucial for its operations [1] - The company is currently making efforts to push forward the development of its Phase II project [1]