Investment Rating - The investment rating for Tianqi Lithium is set at "Hold" with a target price of HK$23.0 for H-shares and Rmb26.26 for A-shares, reflecting a valuation based on P/B multiples [19][21]. Core Insights - The report indicates a near-term bottom for lithium prices at Rmb60k/t, with expectations of supply discipline to help rebalance the market. However, there are concerns about potential supply resumption if prices rebound to Rmb70k/t [1]. - The report maintains a bullish outlook on lithium in the short term, despite anticipated pressure from oversupply in the next 12 months [1]. - Recent data shows mixed trends in lithium prices, with Li2CO3 and LiOH ASP quoted at Rmb60.6k/t and Rmb58.1k/t respectively, indicating slight fluctuations week-over-week [2]. Summary by Sections Lithium Price Trends - Lithium prices are currently experiencing a mixed trend, with Li2CO3 and LiOH ASP at Rmb60.6k/t and Rmb58.1k/t as of June 26, 2025, compared to Rmb60.5k/t and Rmb59.2k/t the previous week [2]. - The production of Li2CO3 in China increased by 2% week-over-week to 18,767 tons, with varying outputs from different sources [2]. Inventory and Production Insights - Total inventory of Li2CO3 reached 136,837 tons, reflecting a 1% increase week-over-week. Inventory levels for downstream players, smelters, and others also showed increases [2]. - The report highlights ongoing production increases across various lithium sources, with brine and lepidolite outputs up by 2% and 3% respectively [2]. Company Valuation - Tianqi Lithium's H-shares are valued at HK$23.0 based on a 0.70x 2025E P/B multiple, while A-shares are valued at Rmb26.26 based on a 1.0x 2025E P/B [19][21].