Investment Rating - The report does not explicitly provide an investment rating for the lithium industry but indicates a bearish outlook on lithium prices and forecasts [1][2] Core Insights - The lithium market is experiencing a significant surplus, with an estimated surplus of around 6% of total supply for the year [1] - Citi Commodity Team has downgraded their price forecasts for lithium salts and spodumene (SC6) by an average of 13% for CY25, 27% for CY26, and 20% for CY27 [1] - Average selling prices (ASPs) for lithium carbonate (Li2CO3) and lithium hydroxide (LiOH) have shown a downward trend, with current prices at Rmb60.5k/t and Rmb59.2k/t respectively [2] Summary by Sections Market Outlook - The lithium market is building large surpluses, leading to downward pressure on prices [1] - The price for SC6 spodumene has been downgraded to US$600/t from US$700/t [1] Production and Inventory - China's Li2CO3 production increased by 2% week-over-week to 18,462 tons [2] - Total inventory of Li2CO3 reached 134,901 tons, reflecting a 1% increase week-over-week [2] - Inventory levels for downstream players, smelters, and battery makers showed mixed trends, with downstream inventories decreasing by 1% [2]