Core Viewpoint - Donghua Technology announced the signing of an EPC contract and an operation contract for a lithium carbonate project in Tibet, marking a significant step in enhancing its performance in the lithium market [1] Group 1: Project Details - The company signed an EPC contract with Tibet Shigatse Zabuye Lithium Industry Co., Ltd. for the comprehensive development and utilization of a 10,000-ton battery-grade lithium carbonate project [1] - The EPC contract stipulates that the company is responsible for the design, procurement, and construction until the completion of the factory's mechanical commissioning and readiness for production [1] - The operation contract outlines the company's responsibility for daily production operations and safety management during the three-year operational period following the project's readiness for production [1] Group 2: Project Timeline and Milestones - The project is set to complete a 120-hour functional assessment from September 20 to 24, 2025, which will signify the official commencement of production [1] - Successful completion of the functional assessment will further enhance the company's engineering construction achievements in the lithium market [1]

Core Viewpoint - Donghua Technology has signed contracts for a lithium carbonate project in Tibet, marking a significant step in its engineering and operational capabilities in the lithium market [1] Group 1: Project Overview - In September 2021, Donghua Engineering Technology Co., Ltd. signed an EPC contract and an operation contract with Tibet Shigatse Zabuye Lithium Industry High-Tech Co., Ltd. for a lithium carbonate project [1] - The EPC contract stipulates that the company is responsible for the design, procurement, and construction until the factory is ready for production [1] - The operation contract outlines the company's responsibilities for daily production operations and safety management for three years after the project is ready for production [1] Group 2: Project Progress - The project has successfully completed a 120-hour functional assessment from September 20 to 24, 2025, indicating that it is ready for official production [1] - This project is notable for being the world's first large-scale industrial facility to use membrane separation and MVR technology for lithium extraction from salt lakes [1] - The project involves complex technical adjustments, environmental adaptations, and product validations, particularly challenging due to its location in a high-altitude region [1] Group 3: Market Implications - The successful completion of the functional assessment enhances the company's engineering performance in the lithium market [1]

Group 1 - The company has successfully completed the industrialization preparation for lithium sulfide, a core material for the next generation solid-state batteries [1] - The company has developed a new battery-grade lithium sulfide micro-powder, which shows significant improvements in uniformity and activity compared to existing high-purity lithium sulfide products [1] - The development of a recycling purification technology has significantly reduced the production costs of lithium sulfide [1] Group 2 - A pilot project for an annual production of 50 tons of lithium sulfide has been initiated in Meishan, Sichuan, utilizing the company's proprietary high-purity lithium sulfide preparation technology [1] - The new "slurry reduction method" technology allows for the feasibility of lithium sulfide synthesis reactions under medium and low-temperature conditions, offering advantages such as low risk and rapid scalability [1] - The company has provided samples to over ten downstream customers, receiving positive feedback [1]

Group 1 - The company reported total operating revenue of 4.833 billion yuan in H1 2025, a year-on-year decrease of 24.71% [1] - The net profit attributable to shareholders was 84 million yuan in H1 2025, a year-on-year increase of 101.62% [1] - The company achieved a net profit of 132 thousand yuan after deducting non-recurring gains and losses, a year-on-year increase of 100.03% [1] Group 2 - In Q2 2025, the company recorded operating revenue of 2.248 billion yuan, a quarter-on-quarter decrease of 12.99% [1] - The net profit attributable to shareholders in Q2 2025 was -20 million yuan, a quarter-on-quarter decrease of 119.05% [1] - The net profit after deducting non-recurring gains and losses in Q2 2025 was -43 million yuan, a quarter-on-quarter decrease of 197% [1] Group 3 - Lithium prices have been declining rapidly, increasing the company's profit pressure, with the average price of battery-grade lithium carbonate at 65,300 yuan per ton in Q2 2025, a quarter-on-quarter decrease of 14% [1] - Greenbush achieved a net profit of 1.742 billion yuan in H1 2025, with Tianqi's attributable net profit of 584 million yuan [1] - In Q2 2025, Greenbush's lithium concentrate production was 340,000 tons, remaining stable quarter-on-quarter, while sales increased by 12% to 412,000 tons [1] Group 4 - SQM reported a net profit of 1.621 billion yuan in H1 2025, with lithium salt sales of 108,100 tons [2] - In Q2 2025, SQM's lithium salt sales were 53,100 tons, with an average selling price of 8,384 USD per ton [2] - SQM's net profit in Q2 2025 was 88.4 million USD, a quarter-on-quarter decrease of 36% [2] Group 5 - The lithium salt smelting segment reported a loss of 530 million yuan in H1 2025, with Q2 2025 losses improving to approximately 244 million yuan [2] - The company has established lithium chemical product capacity of approximately 91,600 tons per year, with plans for a total capacity of 122,600 tons per year [2] - Non-recurring gains and losses included a provision for inventory impairment of 185 million yuan in H1 2025, with additional impairment of 164 million yuan in Q2 2025 due to falling lithium salt prices [3]

Group 1 - The company, Jiuwu High-Tech, announced on September 23 that it received a bid notification for the "Comprehensive Utilization and Capacity Expansion Project of Lithium Extraction from the Old Brine of the Lop Nur Salt Lake" from State Investment Xinjiang Lithium Industry Co., Ltd [2] - The company has signed a procurement contract for the membrane treatment system related to the aforementioned project with State Investment Xinjiang Lithium Industry Co., Ltd [2]

1. Report Industry Investment Rating - No relevant content provided 2. Core Viewpoints of the Report - The lithium carbonate market is currently in a state of supply - demand imbalance, with over - supply leading to a downward trend that is difficult to reverse. The main logic is capacity mismatch, resulting in strong supply and weak demand. There are both positive and negative factors in the market. Positive factors include manufacturers' production cut plans, a decrease in lithium carbonate imports from Chile, and a decline in lithium spodumene imports. Negative factors include continuous high supply at the ore/salt lake end with limited decline, and insufficient willingness of power battery manufacturers to take delivery [8][9][10][11] 3. Summary According to the Directory 3.1 Daily Viewpoints - **Fundamentals**: Last week, the inventory of lithium iron phosphate sample enterprises was 96,217 tons, a week - on - week increase of 0.81%, and the inventory of ternary material sample enterprises was 17,545 tons, a week - on - week increase of 0.09%. The cost of externally purchased lithium spodumene concentrate was 75,527 yuan/ton, a daily increase of 0.13%, with a production loss of 3,096 yuan/ton. The cost of externally purchased lithium mica was 78,845 yuan/ton, a daily increase of 1.94%, with a production loss of 8,402 yuan/ton. The quarterly cash production cost at the salt lake end was 31,745 yuan/ton, with sufficient profit margins [8] - **Basis**: On September 19, the spot price of battery - grade lithium carbonate was 73,500 yuan/ton, and the basis of the 11 - contract was - 460 yuan/ton, with the spot at a discount [8] - **Inventory**: The smelter inventory was 34,456 tons, a week - on - week decrease of 4.85%, lower than the historical average. The downstream inventory was 59,495 tons, a week - on - week increase of 2.09%, higher than the historical average. The total inventory was 137,531 tons, a week - on - week decrease of 0.70%, higher than the historical average [8] - **Market Chart**: The MA20 of the market chart was downward, and the futures price of the 11 - contract closed below the MA20, showing a bearish trend [8] - **Main Position**: The net short position of the main players decreased, showing a bearish trend [8] - **Expectation**: In August 2025, the lithium carbonate production was 85,240 physical tons, and it is predicted that next month's production will be 86,730 physical tons, a month - on - month increase of 1.75%. The import volume in August was 17,000 physical tons, and it is predicted that next month's import will be 19,500 physical tons, a month - on - month increase of 14.71%. It is expected that demand will strengthen next month, inventory may be reduced, and the price of lithium carbonate 2511 will fluctuate in the range of 72,740 - 75,180 [8] 3.2 Market Overview - **Lithium Ore**: The price of 6% lithium spodumene was 859 US dollars/ton, a daily increase of 0.12%. The price of lithium mica concentrate (2 - 2.5%) was 1,880 yuan/ton, a daily increase of 3.58% [14] - **Lithium Salt**: The price of battery - grade lithium carbonate was 73,500 yuan/ton, a daily increase of 0.07%. The price of industrial - grade lithium carbonate was 71,250 yuan/ton, a daily increase of 0.07% [14] - **Positive Electrode Materials and Lithium Batteries**: The prices of most positive electrode materials and lithium batteries showed small fluctuations, with some products remaining unchanged [14] 3.3 Supply - Lithium Ore - **Price and Production**: The price of lithium ore has shown certain fluctuations, and the production of lithium spodumene and lithium mica mines has different trends in different periods [23] - **Import and Export**: The import volume of lithium concentrate has increased, and the export volume has also changed to a certain extent. The supply - demand balance of domestic lithium ore shows different situations in different months [26] 3.4 Supply - Lithium Carbonate - **Production and Capacity**: The weekly and monthly production and capacity of lithium carbonate from different sources (lithium spodumene, lithium mica, salt lake, and recycling) have different changes [29] - **Import and Export**: The import volume of lithium carbonate from different countries has changed, and the supply - demand balance of lithium carbonate also shows different results in different months [35] 3.5 Supply - Lithium Hydroxide - **Production and Capacity Utilization**: The weekly capacity utilization rate and monthly production of lithium hydroxide from different sources (smelting and causticizing) have changed, and the export volume has also shown different trends in different years [38] - **Supply - Demand Balance**: The supply - demand balance of lithium hydroxide shows different situations in different months [40] 3.6 Lithium Compound Cost - Profit - **Cost and Profit of Lithium Spodumene and Lithium Mica**: The production cost and profit of externally purchased lithium spodumene concentrate and lithium mica concentrate have changed, and the processing cost is composed of multiple parts [43] - **Import and Other Profits**: The import profit of lithium carbonate, the profit of recycling and producing lithium carbonate, and the profit of lithium hydroxide processing and exporting have all changed [43][45][48] 3.7 Inventory - **Lithium Carbonate Inventory**: The weekly and monthly inventory of lithium carbonate in smelters, downstream, and other aspects has different trends [50] - **Lithium Hydroxide Inventory**: The monthly inventory of lithium hydroxide in downstream and smelters has changed [50] 3.8 Demand - Lithium Battery - **Price and Production**: The price of lithium batteries has shown small fluctuations, and the monthly production, shipment volume, and export volume of lithium batteries have different trends [54] - **Inventory and Bidding**: The inventory of lithium battery cells and the EPC bidding situation of energy storage systems have changed [56] 3.9 Demand - Ternary Precursor - **Price and Cost**: The price of ternary precursors has changed, and the cost and profit of different types of ternary precursors have different trends [59] - **Capacity Utilization and Supply - Demand Balance**: The capacity utilization rate of ternary precursors has changed, and the supply - demand balance also shows different situations in different months [59][62] 3.10 Demand - Ternary Material - **Price and Cost - Profit**: The price of ternary materials has changed, and the cost - profit trend of different types of ternary materials has different characteristics [64] - **Production and Inventory**: The production and weekly inventory of ternary materials have changed [64][66] 3.11 Demand - Phosphorus Iron/Phosphorus Iron Lithium - **Price and Cost - Profit**: The price of phosphorus iron/phosphorus iron lithium has changed, and the cost - profit situation of phosphorus iron lithium has different trends [68] - **Production and Inventory**: The production and weekly inventory of phosphorus iron and phosphorus iron lithium have changed [68][71] 3.12 Demand - New Energy Vehicle - **Production, Sales, and Export**: The production, sales, and export volume of new energy vehicles have different trends, and the sales penetration rate has also changed [76] - **Retail - Wholesale Ratio and Inventory Index**: The retail - wholesale ratio of hybrid and pure - electric new energy vehicles and the inventory warning and inventory indexes of dealers have changed [80]

Report Industry Investment Rating No relevant content provided. Core Viewpoints of the Report - The overall operation of the lithium carbonate market this week was stable, in line with previous expectations. The news of illegal waste disposal by Xinghua Lithium Salt Co., Ltd. in Qinghai triggered concerns about environmental compliance, but it has not yet had a substantial impact on the supply - demand fundamentals. The core contradiction of lithium carbonate futures price trends in the next month will focus on supply - side factors such as the resumption of production at Jiuxiaowo, potential disruptions at Qinghai lithium salt enterprises due to environmental inspections, and market sentiment regarding the "930" node in Jiangxi, as well as demand - side factors such as the support of downstream restocking demand during the peak season [1]. - If the "930" shutdown expectation in Jiangxi is not fulfilled after the National Day holiday, some long positions in the futures market may face closing pressure, potentially suppressing prices in the short term. The evolution of demand will also significantly affect prices. If demand support persists, prices are expected to remain in a reasonable range; otherwise, prices may weaken. By the end of October, if the resumption of production at Jiuxiaowo exceeds market expectations, prices will show a weakening trend [2]. - From a national industrial policy perspective, the demand of downstream lithium - battery material enterprises is expected to increase month - on - month by the end of the year, which may provide phased support for lithium carbonate futures prices. It is estimated that before the National Day holiday, lithium carbonate futures prices will fluctuate between 72,000 - 76,000 yuan/ton [2]. Summary by Directory Chapter 1: Core Contradictions and Strategy Recommendations 1.1 Core Contradictions - The current core contradiction in the lithium carbonate market lies in the supply - side factors such as the resumption of production at Jiuxiaowo, potential disruptions at Qinghai lithium salt enterprises due to environmental inspections, and market sentiment regarding the "930" node in Jiangxi, and demand - side factors such as the support of downstream restocking demand during the peak season [1]. - The market focus is first on the "930" shutdown expectation in Jiangxi and further environmental policies. The evolution of demand after the National Day and the resumption of production at Jiuxiaowo in late October will also be crucial for price trends [2]. 1.2 Trading - Type Strategy Recommendations - **Trend Judgment**: Wide - range fluctuations. The price range is 70,000 - 78,000 yuan/ton, with a low - level range of 68,000 - 70,000 yuan/ton and a high - level range of 78,000 - 80,000 yuan/ton [7]. - **Unilateral Strategy**: When the price reaches the high - level range, short positions can be established (preferably above 78,000 yuan/ton) [9]. - **Basis Strategy**: The basis is expected to gradually weaken [9]. - **Calendar Spread Strategy**: Hold the long spread of LC2511 - LC2605 and plan to exit at the end of the month [9]. - **Option Strategy**: Sell LC2511 - P - 70000 or put options with a strike price below 70,000 (preferably enter at a price above 1,000); hold the short position of LC2511 - C - 78000 or call options with a strike price above 78,000 (preferably enter at a price above 1,700) [9]. 1.3 Industry Customer Strategy Recommendations - For lithium - battery enterprises, different hedging strategies are recommended based on different scenarios such as procurement management, sales management, and inventory management, including using futures, on - exchange/over - the - counter options, and different hedging ratios and entry price ranges [11]. Chapter 2: Market Information 2.1 This Week's Main Information - **Positive Information**: The news of illegal waste disposal by Xinghua Lithium Salt Co., Ltd. in Qinghai triggered market concerns; the Ministry of Industry and Information Technology will accelerate the R & D and industrialization of forward - looking technologies; Fulin精工's subsidiary received a 1.5 - billion - yuan prepayment from CATL; Ganfeng Lithium's energy - storage cell production capacity is fully utilized [12]. - **Negative Information**: The Ministry of Industry and Information Technology is researching and formulating the "15th Five - Year Plan for the Development of the New Battery Industry" to prevent low - level redundant construction [13]. 2.2 Next Week's Main Information No relevant information provided. Chapter 3: Futures and Price Data 3.1 Price - Volume and Capital Interpretation - This week, lithium carbonate futures prices fluctuated widely, with a simultaneous decline in trading volume and open interest. The weighted index contract closed at 74,015 yuan/ton on Friday, up 3.84% week - on - week. The trading volume was about 492,300 lots, down 5.89% week - on - week, and the open interest was about 734,900 lots, down 3.61% week - on - week [16]. - Technical indicators suggest that the market is likely to enter a stage of fluctuating decline, but considering the support of moving averages, it is expected to maintain a wide - range consolidation pattern. The implied volatility of at - the - money options has the possibility of a phased increase [16]. - As the National Day holiday approaches, there are signs of short - position withdrawal, and investors are advised to reduce their positions [18]. - The term structure of lithium carbonate has changed from a backwardation to a contango structure, and there is a possibility of further weakening in the future [21]. - This week, the basis of the lithium carbonate main contract fluctuated. Based on historical data and spot - market fundamentals, the basis may weaken after the end of downstream restocking at the end of the month [25]. 3.2 Spot Price Data - The prices of various lithium - related products in the lithium - battery industry chain showed different trends this week, with some raw materials and products experiencing price increases, while others decreased [27]. Chapter 4: Valuation and Profit Analysis 4.1 Profit Tracking of the Upstream and Downstream of the Industrial Chain - The profits of lithium - salt enterprises that purchase lithium ore externally have been marginally weakening this week, but most enterprises still maintain a certain level of profitability due to previous hedging positions. The profits of enterprises purchasing lithium spodumene have increased, while those purchasing lithium mica have decreased, indicating a shortage of mica ore [28]. - The processing profits of lithium - iron phosphate plants and cobalt - acid lithium plants have started to strengthen this week, while the profit growth of ternary - material plants and manganese - acid lithium plants has decreased marginally, indicating an improvement in demand for lithium - iron phosphate cells [28]. 4.2 Import and Export Profits - Recently, the import profit of lithium carbonate has been decreasing marginally, which may affect future import volumes. In contrast, the export profit of lithium hydroxide has been increasing [32]. Chapter 5: Fundamental Situation 5.1 Lithium Ore Supply - **Domestic Mine Production**: No specific production data was provided, but charts showed the seasonal trends of domestic lithium - ore production [35]. - **Overseas Mine Imports**: No specific import data was provided, but charts showed the import volume of lithium concentrate by country and the monthly import volume of lithium spodumene by country [37]. - **Lithium Ore Inventory**: The domestic lithium - ore inventory has decreased this week, including the total available inventory, trade - merchant inventory, warehouse inventory, and port inventory [39]. 5.2 Upstream Lithium - Salt Supply - **Lithium Carbonate Supply**: The total production of sample enterprises this week was 20,363 tons, an increase of 2.00% week - on - week. The production of lithium carbonate from different sources such as lithium spodumene, lithium mica, salt - lake materials, and recycled materials also showed different trends [41]. - **Lithium Carbonate Net Exports**: No specific net - export data was provided, but a chart showed the seasonal trend of net exports [58]. - **Lithium Carbonate Inventory**: The total weekly inventory of lithium carbonate decreased by 0.71% week - on - week, with a decrease in smelter inventory and an increase in downstream inventory [59]. - **Lithium Hydroxide Supply**: No specific production data was provided, but charts showed the monthly production of lithium hydroxide by process, total monthly production, and production by the smelting and causticizing ends, as well as the seasonal trends of production and operating rates [68]. 5.3 Mid - Stream Material Plant Supply - **Material Plant Production**: The production of various materials such as lithium - iron phosphate, ternary materials, cobalt - acid lithium, manganese - acid lithium, and lithium hexafluorophosphate showed different trends this week, with some increasing and some decreasing [73]. - **Material Plant Inventory**: No specific inventory data was provided, but charts showed the seasonal trends of the total weekly inventory of ternary materials, lithium - iron phosphate, and other materials [83]. 5.4 Downstream Cell Supply - **Power Cell Production**: The weekly production of power cells was 26.01 GWh, an increase of 0.08% week - on - week. The production of iron - lithium and ternary power cells also showed different trends [87]. - **Consumption - Type Cell Production**: No specific monthly production data was provided, but charts showed the monthly production of consumption - type cells by category and the seasonal trends of production [88]. - **Lithium - Battery Installation Volume**: No specific installation - volume data was provided, but charts showed the seasonal trends of the total installation volume of lithium batteries and the installation volume of power lithium batteries by vehicle type [91]. 5.5 New - Energy Vehicles - **New - Energy Vehicle Production and Sales**: The production and sales of new - energy vehicles showed different trends, with the weekly sales of domestic new - energy passenger vehicles increasing by 41.99% week - on - week, and the penetration rate of new - energy vehicles reaching 60.00% [95]. - **New - Energy Commercial Vehicle Production**: The production of new - energy commercial vehicles showed different trends, and charts showed the production volume and seasonal trends [99]. - **Automobile Inventory**: No specific inventory data was provided, but a chart showed the seasonal trend of the domestic automobile dealer inventory warning index [104]. 5.6 Energy Storage - The total bid - winning power and capacity of energy - storage projects showed different trends, and charts showed the total bid - winning capacity and its seasonal trend [106].

Group 1 - Tianqi Lithium Industries saw a stock price increase of 5.59%, reaching 45.56 CNY per share, with a trading volume of 1.916 billion CNY and a turnover rate of 2.91%, resulting in a total market capitalization of 74.774 billion CNY [1] - The company, established on October 16, 1995, and listed on August 31, 2010, is located in Chengdu, Sichuan Province, and specializes in the production and sales of lithium concentrate products and lithium compounds and their derivatives [1] - The revenue composition of Tianqi Lithium includes 50.54% from lithium compounds and derivatives, 49.25% from lithium ore, and 0.21% from other sources [1] Group 2 - According to data from the top ten holdings of funds, one fund under China Merchants Fund has a significant position in Tianqi Lithium, specifically the China Merchants CSI New Energy Vehicle Index A fund, which reduced its holdings by 25,000 shares in the second quarter, now holding 321,700 shares, accounting for 2.49% of the fund's net value [2] - The China Merchants CSI New Energy Vehicle Index A fund, established on August 27, 2021, has a current scale of 126 million CNY, with a year-to-date return of 42.44%, ranking 870 out of 4222 in its category, and a one-year return of 85.97%, ranking 872 out of 3805 [2] Group 3 - The fund manager of the China Merchants CSI New Energy Vehicle Index A fund is Liu Zhongjie, who has been in the position for 7 years and 140 days, managing total assets of 31.428 billion CNY, with the best fund return during his tenure being 101.67% and the worst being -32.44% [3]

Group 1 - Tianqi Lithium Industries Inc. experienced a stock price increase of 5.59%, reaching 45.56 CNY per share, with a trading volume of 1.916 billion CNY and a turnover rate of 2.91%, resulting in a total market capitalization of 74.774 billion CNY [1] - The company, established on October 16, 1995, and listed on August 31, 2010, is primarily engaged in the production and sales of lithium concentrate products and lithium compounds and their derivatives [1] - The revenue composition of Tianqi Lithium is as follows: lithium compounds and derivatives account for 50.54%, lithium ore for 49.25%, and other products for 0.21% [1] Group 2 - Tianhong Fund has a significant holding in Tianqi Lithium, with its Tianhong CSI New Energy Vehicle A fund (011512) reducing its stake by 26,800 shares in the second quarter, now holding 727,300 shares, which represents 2.49% of the fund's net value [2] - The Tianhong CSI New Energy Vehicle A fund was established on April 9, 2021, with a current size of 130 million CNY, achieving a year-to-date return of 42.73% and ranking 853 out of 4222 in its category [2] - The fund has delivered a one-year return of 84.94%, ranking 894 out of 3805 in its category, and a cumulative return of 13% since its inception [2] Group 3 - The fund manager of Tianhong CSI New Energy Vehicle A is Qi Shichao, who has been in the position for 241 days, overseeing total fund assets of 21.225 billion CNY [3] - During his tenure, the best fund return achieved was 42.46%, while the worst return was 9.36% [3]

Core Viewpoint - The lithium carbonate futures market is experiencing a significant shift, with a notable withdrawal of long positions and a decline in prices, driven by changing supply and demand dynamics and expectations of increased production from major players like CATL [2][9][10]. Market Dynamics - The benchmark price for battery-grade lithium carbonate in China has dropped to 71,683 yuan/ton, reflecting a 3.07% decrease week-on-week and an 11.94% decline month-on-month [2]. - On September 10, the main futures contract opened significantly lower, reaching a low of 68,600 yuan/ton, nearly hitting the daily limit down [3][4]. - The overall market sentiment has shifted towards bearish, with a high proportion of short positions among the top 20 futures companies [4]. Supply and Demand Changes - The recent price drop is attributed to a transformation in the supply-demand fundamentals, particularly due to the anticipated resumption of production at CATL's Jiangxiawo lithium mine [9][10]. - Lithium carbonate production in August reached a record high of 85,200 tons, contributing to increased supply [13]. - The cost of producing lithium carbonate from spodumene has decreased from 80,000 yuan/ton at the beginning of the year to approximately 65,000 yuan/ton, further weakening the support for prices [11]. Demand Trends - Demand from traditional sectors, particularly mid-to-low-end electric vehicles, has shown signs of weakness, with battery manufacturers focusing on inventory reduction [14]. - Despite a 5% increase in production from leading battery manufacturers, actual purchasing intentions remain low due to ongoing price declines [14]. - The only bright spot in demand is the energy storage sector, which has seen its production share rise to 38.5%, a historical high [15]. Market Reactions - Traders are adopting a cautious approach, with many inquiries but limited actual transactions, reflecting concerns over further price declines [16]. - High-cost producers, particularly those relying on lithium mica, are facing significant losses and may reduce production or exit the market [17]. Future Outlook - The market is currently seeking a new price equilibrium, with long-term expectations suggesting prices will fluctuate between 70,000 yuan/ton and 80,000 yuan/ton [18]. - Some companies are adjusting their strategies, such as Ganfeng Lithium integrating lithium salt lake assets in Argentina [20]. - New technologies in lithium recovery and direct lithium extraction are gaining attention, with companies exploring ways to reduce costs further [21]. - Industry experts predict that lithium demand will maintain an annual growth rate of over 15% in the next five years, indicating a potential return to supply-demand balance [22].