Group 1: Investment Rating - Not provided Group 2: Core Viewpoints - The short - term price of lithium carbonate futures is expected to fluctuate, and it is still bullish in the medium term. The short - term basis still has regression pressure, but considering the strong spot demand and continuous inventory reduction, the callback space of futures prices is also limited [8] Group 3: Summary by Directory 1. Market Review and Operation Suggestions - Lithium carbonate futures fluctuated. The selling sentiment in the A - share market and polysilicon was transmitted to lithium carbonate during the day, causing the futures price to fall to around 85,000 and then rebound at the end of the session. The total open interest increased by 11,156 lots, indicating strong capital entry willingness. The spot price of lithium carbonate rose by 1,000 to 83,300, and the basis has regressed. The prices of 6F, Australian ore, mica, ternary materials, and lithium iron phosphate all increased, and the price increase in the industrial chain continued, but the upward trend of electrolyte slowed down [8] 2. Industry News - Core Lithium optimized the mining plan for the Grants deposit in its Finniss lithium project, reducing pre - production capital expenditure by 35 - 45 million Australian dollars and advancing the production time of the first batch of ore. The ore reserves increased by 33% to 1.53 million tons, and the contained lithium oxide metal increased by 44% [11] - CATL's Chairman and CEO Zeng Yuqun said that the mass - produced fourth - generation lithium iron phosphate battery leads the mainstream second - and third - generation products in the industry, and the fifth - generation product has begun mass production, achieving new breakthroughs in energy density and cycle life [11] - The Jiangxi Natural Resources Department publicized the evaluation report of the mining right transfer income of the Jianxiawo lithium mine. According to the evaluation results, CATL may need to pay an additional 177 million yuan [12]

Core Viewpoint - The article highlights the commencement of a new lithium slag harmless comprehensive utilization project by Hunan Dazhonghe Lithium Mine Co., Ltd., which is expected to produce 80,000 tons of battery-grade lithium carbonate annually by 2028 [1]. Group 1 - Hunan Dazhonghe Lithium Mine has launched a lithium slag utilization project that aims for an annual output of 80,000 tons of battery-grade lithium carbonate, with completion expected in 2028 [1]. - On the same day, Dazhong Mining's parent company announced that its wholly-owned subsidiary, Chenzhou Chengtai Mining Investment Co., Ltd., received a 30-year mining license for the Hunan Jijia Mountain lithium mine, marking the first large-scale lithium mining license obtained by Dazhong Mining [1]. - The lithium resources at the Jijia Mountain mine are evaluated at 48,987.2 million tons, equivalent to approximately 3.2443 million tons of lithium carbonate, with an approved open-pit mining scale of 20 million tons per year [1][2].

Report Title - The report is titled "Carbonate Lithium Daily Review 20251029: Beware of Price Reversals after Peaking" [1] Report Industry Investment Rating - No industry investment rating is provided in the report Core Viewpoints - The current supply and demand are both strong, with low inventory pressure upstream. The price is rising due to macro - improvement and warrant cancellation. However, production is continuously increasing, downstream inventory replenishment is slowing down, and the inflection point of power demand may be approaching. It is necessary to guard against price reversals after peaking. The trading strategy suggests shorting on rallies [2] Summary by Relevant Content 1. Market Data on October 28, 2025 - **Futures Prices**: The closing prices of near - month, consecutive - one, consecutive - two, consecutive - three contracts of carbonate lithium futures decreased compared to the previous day, with declines ranging from 260 to 340 yuan/ton. The closing price of the active contract decreased by 260 yuan/ton to 81640 yuan/ton [2] - **Trading Volume and Open Interest**: The trading volume of the active contract was 729307 lots, an increase of 214852 lots compared to the previous day. The open interest was 488803 lots, an increase of 5325 lots [2] - **Inventory**: The inventory was 27335 tons, a decrease of 404 tons compared to the previous day [2] - **Spreads**: The spread between near - month and consecutive - one contracts was - 680 yuan/ton, a decrease of 60 yuan/ton compared to the previous day. The spread between consecutive - one and consecutive - two contracts was 320 yuan/ton, an increase of 80 yuan/ton [2] - **Base Price**: The base price (SMM battery - grade carbonate lithium average price - carbonate lithium active contract closing price) was - 3140 yuan/ton, an increase of 2210 yuan/ton compared to the previous day [2] 2. Raw Material Prices - The prices of spodumene concentrate, lithium mica, and various lithium ores increased. For example, the average price of spodumene concentrate (6%, CIF China) was 925 US dollars/ton, an increase of 19 US dollars/ton compared to the previous day [2] 3. Lithium Product Prices - The average prices of battery - grade and industrial - grade carbonate lithium increased. The average price of battery - grade carbonate lithium was 78500 yuan/ton, an increase of 1950 yuan/ton compared to the previous day [2] - The average prices of different types of lithium hydroxide also increased slightly. The average price of battery - grade micro - powder lithium hydroxide was 79700 yuan/ton, an increase of 550 yuan/ton compared to the previous day [2] 4. Other Related Product Prices - The average price of hexafluorophosphate lithium (99.95% domestic) was 100500 yuan/ton, an increase of 3000 yuan/ton compared to the previous day [2] - The prices of some ternary precursors and materials increased slightly, and the prices of some cathode materials such as lithium iron phosphate also increased [2] 5. Inventory Data - The SMM carbonate lithium inventory decreased. The total inventory was 130366 tons, a decrease of 2292 tons compared to the previous week. Among them, the inventory of smelters decreased by 602 tons, the inventory of downstream decreased by 2460 tons, and the inventory of others increased by 770 tons [2] 6. Industry News - On October 28, Dazhong Mining announced that its wholly - owned subsidiary Liuzhou Chengtai Mining Investment Co., Ltd. obtained a 30 - year "Mining License" for the Hunan Jijiaoshan lithium mine. The lithium ore resource volume is 48987200 tons, equivalent to about 3.2443 million tons of carbonate equivalent. The open - pit mining scale is 20 million tons per year, which can produce 80000 tons of lithium carbonate per year [2] - Chile's lithium national strategy is advancing. The Chilean Ministry of Mining has submitted a decree to the Comptroller - General of the Republic, specifying the terms and conditions of CEOL contracts with several consortia, which will enable the development of a lithium project in the Quillagua Este area [2]

Core Viewpoint - Dazhong Mining's subsidiary, Chenzhou Chengtai Mining, has obtained a 30-year mining license for the Hunan Jijieshan lithium mine, marking a significant achievement in the strategic exploration efforts during the 14th Five-Year Plan [1] Group 1: Mining License and Resource Details - The Hunan Jijieshan lithium mine has a lithium ore volume of 490 million tons, equivalent to approximately 3.2443 million tons of lithium carbonate [1] - The mine's open-pit mining scale is set to reach 20 million tons per year, significantly surpassing other companies in the industry [1] - The annual extraction of 20 million tons of raw ore can produce 80,000 tons of lithium carbonate, positioning Dazhong Mining as a key supplier in the lithium battery raw material sector [1] Group 2: Regulatory and Compliance Aspects - Dazhong Mining is the first company in China to obtain a lithium mining license following the implementation of the new Mineral Resources Law, highlighting its comprehensive compliance in environmental, safety, and construction design aspects [1] - The achievement reflects the efficiency of the new law in facilitating the approval process for the compliant development of strategic minerals [1]

Core Viewpoint - The company has obtained a mining license for the Hunan Jijia Mountain lithium mine, marking its first large-scale lithium mining license, with significant resource and production potential [1] Group 1: License and Resource Details - The mining license is valid for 30 years and was issued by the Ministry of Natural Resources [1] - The lithium resource amount is reported to be 48,987.2 million tons, equivalent to approximately 324.43 thousand tons of lithium carbonate [1] - The approved open-pit mining scale is 20 million tons per year, which can produce 80 thousand tons of lithium carbonate annually based on industry experience and company tests [1] Group 2: Strategic Implications - The acquisition of this license highlights the company's strategic move into the lithium mining sector, leveraging its resource advantages [1] - The scale of the mining operation positions the company favorably within the growing lithium market, which is critical for battery production and electric vehicle industries [1]

Core Viewpoint - The article discusses the recent developments regarding the verification of lithium resource reserves by eight lithium companies in Yichun, which is crucial for the lithium industry and capital markets, particularly concerning potential changes in mining types and production status [3][4]. Group 1: Regulatory Developments - On September 30, the deadline for the submission of reserve verification reports by eight lithium companies in Yichun was highlighted, with significant attention on whether there would be changes in mining types or production halts [3]. - The Yichun Natural Resources Bureau issued a notice in July requiring these companies to compile reports to ensure compliance with auditing and regulatory standards, emphasizing the need to scientifically determine the primary mining type [4][6]. Group 2: Company Responses and Industry Context - The eight lithium companies, including Yichun Times New Energy Mining Co. and Yichun Guoxuan Mining Co., confirmed that their reports were prepared according to the regulatory requirements and are awaiting expert evaluations from the government [4][5]. - The lithium resources in Yichun are noted to be abundant, but the lithium content is generally low, with the region being referred to as "Asia's Lithium Capital" [5]. Group 3: Mining Type and Economic Viability - The submitted reserve verification reports were based on a lithium oxide grade of 0.2%, indicating no changes in mining types at this stage, although future changes may be necessary as the industry evolves [5][6]. - The article mentions that previously, lithium mining rights were only granted for lithium oxide grades of 0.4% or higher, but advancements in extraction technology and rising lithium prices have made lower-grade resources economically viable [5].

Core Viewpoint - The company emphasizes its strategy of prioritizing the supply of lithium concentrate products to its joint venture lithium salt enterprises, aligning with its resource advantage development strategy [1] Group 1 - The company confirms that its joint venture lithium salt enterprises serve as supporting smelting plants for its lithium mining operations, with investment income recognized based on ownership percentage [1] - The company states that the pricing principles for both related and unrelated transactions are consistent, referencing market prices for fair and reasonable pricing [1] - There are no instances of harming the interests of the company or its investors through related party transactions [1]

Core Insights - The company Dazhong Mining (001203) announced that the resource quantity of the Sichuan Gada Lithium Mine's first mining area has been approved by the Ministry of Natural Resources, with a total ore quantity of 43.436 million tons and a Li2O mineral quantity of 600.9 thousand tons, exceeding the company's expectations [1] Group 1 - The lithium ore resource quantity is 43.436 million tons, with an average grade of 1.38%, equivalent to approximately 148.42 thousand tons of lithium carbonate [1] - The company is advancing the procedures for exploration to mining transition and is conducting exploration outside the first mining area [1] - As of August 20, the company has completed 15,100 meters of drilling with a mineral discovery rate of 95% [1] Group 2 - The company has deployed two shield machines for simultaneous construction of exploration tunnels and shafts to facilitate subsequent engineering [1] - The company has determined the process flow for heavy flotation and combined selection in the beneficiation aspect [1] - Preliminary design and safety facility design for the tailings pond have been completed and reviewed by external experts [1]

Report Summary 1. Investment Rating No investment rating for the industry is provided in the report. 2. Core View The current supply and demand of lithium carbonate are both strong, and the upstream inventory pressure is not significant. With the active resumption of key mines, the expectation of supply contraction has weakened. It is expected that the price of lithium carbonate will fluctuate at a low level. [1] 3. Summary by Relevant Content 3.1 Lithium Carbonate Futures and Spot Market - **Futures Prices**: On September 15, 2025, the closing prices of near - month, 5 - consecutive - one, 3 - consecutive - two, 3 - consecutive - three, and other contracts of lithium carbonate futures all increased compared to September 12. For example, the near - month contract closed at 72,520 yuan/ton, up 1,340 yuan from September 12. [1] - **Trading Volume and Open Interest**: The trading volume of lithium carbonate futures on September 15 was 482,790 lots (+71,801), and the open interest was 309,446 lots (+44). [1] - **Spot Market**: The spot market trading was weak, and the basis changed from premium to discount. The average price of SMM battery - grade lithium carbonate was 72,450 yuan/ton, unchanged from September 12. [1] 3.2 Raw Material Prices - **Lithium Ore**: The price of lithium spodumene concentrate (6%, CIF China) was 848 US dollars/ton, up 6 US dollars from September 12; the price of lithium mica (Li2O: 1.5% - 2.0%) remained at 1,075 yuan/ton; the price of lithium mica (Li2O: 2.0% - 2.5%) was 1,775 yuan/ton, unchanged; the price of phospho - lithium - aluminum stone (Li2O: 6% - 7%) was 5,975 yuan/ton, up 205 yuan; the price of phospho - lithium - aluminum stone (Li2O: 7% - 8%) was 7,065 yuan/ton, up 220 yuan. [1] 3.3 Supply and Demand - **Supply**: Last week, the production of lithium carbonate increased, and the production of lithium carbonate from different raw materials all rose. [1] - **Demand**: - **Downstream Product Production**: Last week, the production of lithium iron phosphate increased, while the production of ternary materials decreased. In September, the planned production of lithium carbonate and lithium hydroxide increased. The production of power batteries increased last week. [1] - **Terminal Demand**: In August, the year - on - year growth rate of new energy vehicle production slowed down; the 3C product shipments were average; the production of energy - storage batteries will increase in September. [1] 3.4 Inventory - **Registered Warehouse Receipts**: The registered warehouse receipts were 38,963 tons (+338). [1] - **Social Inventory**: The social inventory decreased. The inventories of smelters and other sectors decreased, while the downstream inventory increased. The total SMM lithium carbonate inventory was 138,512 tons, down 1,580 tons from last week. [1] 3.5 Important Information On September 15, London - listed Savannah Resources said that after completing additional exploration work, the reserve estimate of its lithium mine project in northern Portugal increased by 40%. The spodumene reserve of Barroso resources is now expected to exceed 39 million tons, up from the previous estimate of 28 million tons, making it the largest spodumene deposit in Europe. [1] 3.6 Investment Strategy It is recommended to short at high levels. [1]

Report Industry Investment Rating - No explicit industry investment rating is provided in the report. Report's Core View - On September 4, the main contract of lithium carbonate futures rebounded after hitting a low. The spot market had fair trading volume, and the basis premium decreased. The cost side saw an increase in the price of spodumene concentrate and a decrease in the price of lepidolite. The supply side witnessed a rise in lithium carbonate production last week, with a slight increase in the production of lithium carbonate from different raw materials. In terms of downstream demand, the production of lithium iron phosphate increased last week, while the production of ternary materials decreased. In September, the scheduled production of lithium cobalt oxide and lithium manganate increased. The production of power batteries increased last week. In terms of terminal demand, the year - on - year growth rate of new energy vehicle production slowed down in August, the 3C shipments were average, and the scheduled production of energy storage batteries increased in September. In terms of inventory, the registered warehouse receipts were 34,948 (+830) tons, and the social inventory decreased. Considering all factors, with good profits, high lithium carbonate production, rising downstream demand, and decreasing social inventory, the short - term supply and demand both strengthened. The impact from the Jiangxi mine end has been eliminated, and the short - term fundamentals have not changed much. The market is still easily affected by news. It is expected that the lithium carbonate price will fluctuate widely, and it is not advisable to be overly bearish. Operationally, it is recommended to conduct short - term range trading, appropriately buy options to protect positions, and take appropriate profit - taking on the previously bought straddle options. [1] Summary According to Related Information Market Data - **Futures Prices**: On September 4, 2025, the closing price of the near - month contract was 73,000 yuan/ton, that of the consecutive - one contract was 73,340 yuan/ton, the consecutive - two contract was 73,580 yuan/ton, and the consecutive - three contract was 77,700 yuan/ton. - **Trading Volume and Open Interest**: The trading volume of lithium carbonate futures was 712,151 (+269,351) lots, and the open interest was 353,674 (+7,626) lots. - **Inventory**: The registered warehouse receipts were 34,948 (+830) tons. - **Spreads**: The spread between the near - month and consecutive - one contracts was - 340 yuan/ton, the spread between the consecutive - one and consecutive - two contracts was - 140 yuan/ton, and the spread between the consecutive - two and consecutive - three contracts was 440 yuan/ton. The basis was 1,580 yuan/ton. - **Spot Prices**: The average price of SMM battery - grade lithium carbonate was 75,000 yuan/ton, and the price of spodumene concentrate (6%, CIF China) was 874 US dollars/ton. [1] Industry News - **Salt Lake Mining Rights**: Salt Lake Co., Ltd. (000792) responded during a research reception that the current mining rights compliance inspection is a new trend of stricter industry supervision, reflecting the strict control of the regulatory authorities over the compliance of lithium resource development and utilization activities. The company's mining business is fully compliant, and its production and operation are running stably. - **Ioneer's Project**: Ioneer reduced the leaching time and increased the plant output. The economic viability of its Rhyolite Ridge project in Nevada has been substantially improved. The updated mine plan shows that the unlevered net present value of the mine increased by 38% to $1.89 billion, and the unlevered internal rate of return rose to 16.8%. From the third to the twenty - fifth year, the annual production of lithium carbonate equivalent increased by 20% to 255,000 tons, and the production of lithium carbonate increased by 9% to 126,700 tons. The estimated all - sustaining cash cost of lithium carbonate equivalent is $5,626/ton, and the ore throughput increased by 25% from 2.4 million tons per year to 3 million tons per year. - **Kodal Minerals' Project**: Kodal Minerals obtained an export license for the spodumene concentrate produced from its Bougouni lithium project in southern Mali. The initial export volume is 125,000 tons, but the final administrative steps in the export process need to be completed. [1]