Core Viewpoint - The lithium carbonate price has significantly declined, dropping below 60,000 yuan/ton, raising concerns about whether it has reached a bottom, impacting the entire lithium supply chain and leading companies to seek opportunities overseas [1][2][3]. Price Trends - As of June 16, the domestic lithium carbonate futures contract closed at 59,780 yuan/ton, continuing a downward trend since May [2]. - The price fell from a high of approximately 77,000 yuan/ton in January to around 59,600 yuan/ton by the end of May, marking a decline of 22.6% [2]. - The average price of battery-grade lithium hydroxide in May was 68,250 yuan/ton, down 5.4% month-on-month and 32.78% year-on-year [4]. Supply and Demand Dynamics - Analysts indicate that the supply of lithium carbonate is expected to exceed demand by 2025, driven by increased production from lithium mines and salt lake projects [3]. - The demand for lithium products, particularly in the electric vehicle sector, is anticipated to slow down due to high penetration rates and declining growth in the power sector [3]. - The ongoing supply-demand mismatch has led to a significant drop in prices for downstream products like lithium iron phosphate and lithium hydroxide [3][4]. Industry Adjustments - Companies are facing increased operational pressures, leading to project terminations and adjustments in production plans [5][6]. - For instance, Zhongke Titanium White announced the termination of its fundraising projects due to changes in market demand and supply dynamics [5]. - The overall profitability of companies in the lithium sector has been affected, with many facing losses due to fluctuating raw material prices and competitive pressures [6][8]. International Opportunities - Despite the domestic market challenges, analysts suggest that overseas markets present significant profit potential for lithium salt companies, as there remains a substantial price gap between domestic and international markets [9][10]. - Companies like Longpan Technology and Hunan Youneng are actively pursuing international projects to capitalize on these opportunities [10][11].