Report Summary 1. Industry Investment Rating - No information provided 2. Core View - The market is characterized by a game between increasing supply and demand, with weakening market sentiment and wide - range oscillations [5] 3. Summary by Relevant Catalogs 3.1 Market Condition - The closing price of the main contract yesterday was 155,040 yuan/ton, a 5.14% drop from the previous trading day. Trading volume increased, and positions decreased to 330,400 lots. The long - short ratio of the top twenty institutional net positions decreased. The average price of battery - grade spot was 159,000 yuan/ton. Upstream lithium salt factories' willingness to sell single orders increased, while downstream material factories were cautious and had weak purchasing willingness, mainly for rigid - demand restocking. Market inquiry and actual transactions were somewhat light [3] 3.2 Supply - Last week, the prices of raw materials (SMM lithium spodumene concentrate CIF China, lithium mica, and amblygonite) decreased compared to the previous week but remained at a high level. The SMM weekly operating rate rose to 51.5%, and the total output increased to 22,590 tons (+768 tons). In February, Chile's lithium carbonate exports to China increased by 32.04% month - on - month and 85.89% year - on - year. Rio Tinto's Rincón lithium project in Argentina made its first export, sending 200 tons of lithium carbonate to China, strengthening the medium - term supply relaxation expectation [4] 3.3 Demand - Last week, the production and inventory of ternary lithium iron increased. As of February 8th, the penetration rate of new energy vehicle sales in SMM dropped to 36.3%, at a relatively low level. Energy - storage cells had strong production and sales and low inventory, being a structural highlight. SMM predicted that the production of ternary lithium iron in March would increase by more than 19% month - on - month, and the industrial chain production schedule maintained high prosperity [4] 3.4 Inventory - Last week, the SMM four - place social inventory decreased to 43,000 tons (-1,300 tons), the sample weekly inventory decreased to 99,400 tons, at a relatively low level. The total inventory days decreased to 27.9 days, maintaining a tight - balance pattern [4] 3.5 Macro - policy - Internationally, the US White House's 15% temporary tariff policy is still within the window period, providing phased benefits to demand. Geopolitical conflicts, with the tense situation between the US and Iran, keep Brent crude oil around $89 per barrel, and geopolitical risk premiums still exist, disturbing market sentiment. Domestically, car trade - in subsidies and battery export tax rebates directly stimulate terminal consumption. The management method for the comprehensive utilization of new energy vehicle power batteries optimizes the domestic supply structure in the long term and raises the cost support center. Qinghai salt - lake development, energy - storage "14th Five - Year Plan", and the Central Economic Work Conference support long - term supply - demand balance. The 2026 government work report mentioned zero - carbon parks/factories, which is expected to become the second growth curve for energy storage [5]