1. Report Industry Investment Rating - No relevant information provided 2. Core Viewpoints of the Report - Yesterday, the lithium carbonate futures contract 2605 dropped 7.97% to 157,200 yuan/ton. The average price of battery - grade lithium carbonate decreased by 1,500 yuan/ton to 163,000 yuan/ton, the average price of industrial - grade lithium carbonate dropped 1,500 yuan/ton to 159,500 yuan/ton, and the price of battery - grade lithium hydroxide (coarse particles) fell 500 yuan/ton to 150,500 yuan/ton. The warehousing receipt inventory was concentratedly cancelled by 19,746 tons, leaving 11,318 tons [3]. - On the supply side, the weekly production data increased by 628 tons to 24,814 tons. In April, the expected production of lithium carbonate will increase by 4% month - on - month to 110,950 tons, with battery - grade lithium carbonate increasing by 4.17% to 81,190 tons and industrial - grade lithium carbonate increasing by 3.77% to 29,760 tons. On the demand side, the expected production of ternary materials in April will decrease by 3.85% month - on - month to 80,970 tons, while the production of lithium iron phosphate will increase by 5.53% to 450,000 tons. On the inventory side, the weekly social inventory of lithium carbonate increased by 616 tons to 99,489 tons, with downstream inventory increasing by 552 tons to 46,657 tons, inventory in other links decreasing by 660 tons to 35,500 tons, and upstream inventory increasing by 724 tons to 17,332 tons [3]. - Affected by the news that the suspension of lithium ore exports from Zimbabwe might be alleviated, the price of lithium carbonate futures dropped significantly. Further observation of policy changes is needed. Recently, the price of lithium ore has been continuously strengthening, reflecting the reality and expectation of tight circulation at the ore end. The reduction caused by the suspension of lithium ore exports from Zimbabwe may appear from late April to May. If the suspension continues, the gap will continue to widen. If there is an expectation of resuming exports, there will be a situation of tight current supply and loose future expectation. The impact of concentrated shipments should be vigilant. Therefore, with high uncertainty currently, it is difficult for the price to maintain at a high level. Also, from the current spot procurement and sales rhythm and inventory rhythm, if the price strengthens rapidly in the short term, the spot trading rhythm may slow down, causing a divergence between futures and spot prices to some extent. It is recommended to continue to pay attention to low - buying opportunities in the future [3]. 3. Summary According to Relevant Catalogs 3.1 Daily Data Monitoring - Futures: The closing price of the main contract decreased from 171,620 yuan/ton on March 30, 2026, to 157,200 yuan/ton on March 31, 2026, a drop of 14,420 yuan/ton; the closing price of the continuous contract decreased from 170,060 yuan/ton to 158,040 yuan/ton, a drop of 12,020 yuan/ton [5]. - Lithium ore: The prices of lithium ore such as lithium spodumene concentrate (6%, CIF China), lithium mica (Li2O: 1.5% - 2.0%), lithium mica (Li2O: 2.0% - 2.5%), and phospho - lithium - aluminum stone (Li2O: 6% - 7%, Li2O: 7% - 8%) remained unchanged [5]. - Lithium carbonate and lithium hydroxide: The average price of battery - grade lithium carbonate decreased by 1,500 yuan/ton to 163,000 yuan/ton, the average price of industrial - grade lithium carbonate dropped 1,500 yuan/ton to 159,500 yuan/ton, and the prices of various types of lithium hydroxide also decreased to varying degrees [5]. - Other products: The price of lithium hexafluorophosphate remained unchanged at 107,000 yuan/ton. The prices of ternary precursors and cathode materials such as ternary precursor 523, ternary material 523, and lithium iron phosphate decreased to varying degrees, while the prices of some products such as manganese acid lithium and cobalt acid lithium remained unchanged [5]. 3.2 Chart Analysis - Ore prices: The report presents charts of the prices of lithium spodumene concentrate (6%, CIF), lithium mica (1.5% - 2.0%, 2.0% - 2.5%), and phospho - lithium - aluminum stone (6% - 7%, 7% - 8%) from 2024 to 2026 [6][9]. - Lithium and lithium salt prices: Charts of the prices of battery - grade metallic lithium, battery - grade lithium carbonate, industrial - grade lithium carbonate, battery - grade lithium hydroxide, industrial - grade lithium hydroxide, and lithium hexafluorophosphate from 2024 to 2026 are shown [12][14][18]. - Spreads: Charts of spreads such as the spread between battery - grade lithium hydroxide and battery - grade lithium carbonate, the spread between battery - grade lithium carbonate and industrial - grade lithium carbonate, and the spread between CIF China - Japan - South Korea battery - grade lithium hydroxide and domestic battery - grade lithium hydroxide are presented [18][20]. - Precursor and cathode materials: Charts of the prices of ternary precursors, ternary materials, lithium iron phosphate, manganese acid lithium, and cobalt acid lithium from 2024 to 2026 are provided [26][28][30]. - Lithium battery prices: Charts of the prices of 523 square ternary cells, square lithium iron phosphate cells, cobalt acid lithium cells, and square lithium iron phosphate batteries from 2024 to 2026 are shown [32][36]. - Inventory: Charts of the downstream inventory, smelter inventory, and inventory in other links of lithium carbonate from July 2025 to March 2026 are presented [39][41]. - Production cost: A chart of the production cost of lithium carbonate from 2024 to 2026, including the cash production profit of purchasing ternary pole piece black powder, lithium iron phosphate pole piece black powder, lithium mica concentrate, and lithium spodumene concentrate, is shown [44].

1. Report Industry Investment Rating - Not provided in the document 2. Core Viewpoints of the Report - In the second quarter, attention should be paid to potential disruptions in overseas resource supply, such as the shipping situation of lithium mines in Australia and Zimbabwe. The vehicle market in the first quarter was affected by policy - driven pre - consumption and the late Spring Festival, but it is expected to improve marginally in the second quarter. The increase in battery capacity can offset some of the negative impact on lithium salt consumption. After excluding individual project interferences, the winning bid prices in the energy storage sector have slightly increased, and price transmission is still ongoing. If overseas supply - side risk events continue to develop, it may lead to a shortage of lithium ore supply, which will push up lithium prices, reduce the actual supply of lithium carbonate, and make the inventory more invisible. In the long - term, the price center will still move up, and it is recommended to consider bottom - fishing [6]. 3. Summary According to the Directory 3.1 Price - In the first quarter, the price of lithium carbonate twice reached above 180,000 yuan/ton and then declined, fluctuating around 150,000 yuan/ton. Factors affecting the price include strong macro - sentiment, mismatch between spot and futures average prices, strong downstream orders and low inventory, pre - festival stocking, concerns about supply shortages due to the suspension of lithium ore shipping in Zimbabwe, slow de - stocking, poor terminal data, and overseas supply disturbances [9][11][12]. 3.2 Inventory - In the first quarter, lithium ore and lithium salts generally showed a continuous de - stocking trend, with the overall de - stocking speed first increasing and then decreasing. By the end of March, the social inventory turnover days decreased to 27.9 days, and there was obvious restocking in the downstream [6][9][25]. 3.3 Theoretical Delivery Profit and Import - Export Profit - Relevant charts show the import profit of lithium carbonate, theoretical delivery profit, theoretical delivery profit of producing lithium carbonate from lithium spodumene and lithium mica, export profit of lithium hydroxide, and外购 production profit [28][29]. 3.4 Lithium Resources - From January to February 2026, the cumulative import of lithium concentrate was 1.074 million tons, a year - on - year increase of 22%. The cumulative export of lithium carbonate from Chile was 49,700 tons, a year - on - year increase of 17%, of which 39,300 tons were exported to China, a year - on - year increase of 26%, accounting for 79% of the export. The cumulative export of lithium sulfate was 39,900 tons, a year - on - year increase of 221%, and almost all were exported to China. The cumulative domestic production of lithium mica was 29,000 tons of LCE, a year - on - year increase of 4%, and the cumulative production of lithium spodumene by sample enterprises was 14,700 tons of LCE, a year - on - year increase of 127%, with a total cumulative production of lithium ore of 43,700 tons of LCE, a year - on - year increase of 28% [31][43][44]. 3.5 Lithium Carbonate - In the first quarter, the cumulative production of lithium carbonate was 287,000 tons, a year - on - year increase of 39.8%. Among them, the production of lithium carbonate from lithium spodumene was 176,000 tons, a year - on - year increase of 55%; from lithium mica was 38,000 tons, a year - on - year decrease of 11.1%; from salt lakes was 46,000 tons, a year - on - year increase of 50.3%; and from recycling was 28,000 tons, a year - on - year increase of 46.9%. From January to February, the cumulative import was 53,000 tons, a year - on - year increase of 64% [4][9][47]. 3.6 Lithium Hydroxide - In the first quarter, the cumulative production of lithium hydroxide was 80,000 tons, a year - on - year increase of 20%. Among them, the smelting production was 69,000 tons, a year - on - year increase of 11%, and the causticizing production was 11,000 tons, a year - on - year increase of 124% [9][55]. 3.7 Lithium Hexafluorophosphate - In the first quarter, the cumulative production of lithium hexafluorophosphate was 75,000 tons, a year - on - year increase of 34% [9][58]. 3.8 Ternary Precursor - In the first quarter, the cumulative production of ternary precursor was 255,000 tons, a year - on - year increase of 31%. The proportion of the 6 - series and 9 - series increased significantly, while the 5 - series decreased. From January to February, the export was 11,900 tons, a year - on - year decrease of 1%, and the import was 200 tons, a year - on - year increase of 17% [9][66]. 3.9 Ternary Material - In the first quarter, the cumulative production of ternary material was 236,000 tons, a year - on - year increase of 47%. The proportion of the 6 - series and 9 - series increased significantly, while the 5 - series decreased. From January to February, the cumulative export was 22,900 tons, a year - on - year increase of 88%, and the import was 11,700 tons, a year - on - year increase of 108% [9][68]. 3.10 Lithium Iron Phosphate - In the first quarter, the cumulative production of lithium iron phosphate was 1.175 million tons, a year - on - year increase of 59% [9][71]. 3.11 Other Materials - In the first quarter, the cumulative production of cobalt - acid lithium was 21,000 tons, a year - on - year decrease of 28%; the cumulative production of manganese - acid lithium was 34,000 tons, a year - on - year increase of 6% [9][74]. 3.12 Lithium Battery - In the first quarter, the cumulative production of lithium batteries was 572 GWh, a year - on - year increase of 51%. Among them, the production of ternary batteries was 90 GWh, a year - on - year decrease of 5%; the production of lithium iron phosphate batteries was 455 GWh, a year - on - year increase of 68%; and the production of other batteries was 27 GWh, a year - on - year increase of 114%. From January to February 2026, the cumulative installed capacity of lithium batteries was 68.3 GWh, a year - on - year decrease of 7%. From January to February 2026, the cumulative export of lithium batteries was 48 GWh, a year - on - year increase of 24% [5][9][77]. 3.13 Terminal - New Energy Vehicles - According to the data of the Passenger Car Association, from January to February, the retail sales of passenger cars were 1.06 million, a year - on - year decrease of 26%; the wholesale sales were 1.59 million, a year - on - year decrease of 8%; the export was 555,000, a year - on - year increase of 116%, and the penetration rate was 42%, a year - on - year decrease of 0.04. In March, the expected retail sales were 900,000, and the expected penetration rate was 52.9%, and the sales of new - energy vehicles in China officially exceeded that of fuel vehicles. From January to February 2026, the average battery capacity per new - energy vehicle was 62.0 kWh, a year - on - year increase of 29.2%. In February, the overall inventory situation improved, and the battery capacity increased significantly. From January to February, the cumulative sales of new - energy heavy trucks were 23,500, a year - on - year increase of 54%; the cumulative sales of domestic new - energy heavy - truck operating licenses were 27,666, a year - on - year increase of 102%. From January to February, the average battery capacity per new - energy vehicle in China was 64.9 kWh, a year - on - year increase of 32.3%. The average battery capacities per vehicle of new - energy passenger cars, trucks, buses, and special vehicles were 54.5 kWh, 223.9 kWh, 211.3 kWh, and 156.8 kWh respectively [5][9][85]. 3.14 Terminal - Energy Storage - From January to February 2026, the tender, winning bid, and installation of energy storage were still greatly affected by the Spring Festival. However, from the perspective of the average winning bid price, the price centers of 2 - hour energy storage and 4 - hour EPC moved up. In terms of installation, it increased significantly compared with previous years, and the installed capacity was basically the same as that in November of the previous year [5][9][100]. 3.15 Supply - Demand Balance - The current balance sheet does not consider the issue of the suspension of lithium ore shipping in Zimbabwe, which may affect the lithium salt supply in late April at the earliest. If it fails to resume, the market will return to a shortage state in May. Attention should be paid to when the shipping can resume and be vigilant against the supply shock caused by the concentrated shipping back to China. There are also concerns about the lithium ore production in Australia at the end of the first quarter. If overseas supply - side risk events continue to develop, the shortage of lithium ore supply will be transmitted to the actual supply of lithium carbonate and further push up prices, and the amplification of stocking and replenishment coefficients may also make the explicit inventory more invisible [6][10][101]. 3.16 Options - Relevant charts show the historical volatility, historical volatility cone, the put - call ratio of option trading volume, and the put - call ratio of option open interest related to lithium carbonate [104][105][106].

Investment Rating - The investment rating for the company is "Outperform the Market" [6][26]. Core Views - The company has achieved a turnaround in 2025, with a revenue of 10.346 billion yuan, down 20.80% year-on-year, and a net profit of 463 million yuan, up 105.85% year-on-year. The significant improvement in profitability is attributed to several factors, including reduced pricing mismatch in lithium products, increased investment income from the associate company SQM, decreased asset impairment losses, and favorable currency exchange rates [2][10][9]. - The company has strong production capabilities, with the Greenbush lithium mine producing 1.35 million tons of lithium concentrate in 2025, and plans for further capacity expansion [14][21]. - The company is well-positioned in the lithium market, benefiting from rising lithium prices and having a robust resource base that supports rapid capacity expansion in lithium salt production [4][26]. Financial Performance - In 2025, the company reported a net cash flow from operating activities of 2.961 billion yuan, down 46.70% year-on-year. The fourth quarter of 2025 saw a revenue of 2.949 billion yuan, a slight decrease of 1.66% year-on-year, but a significant increase in net profit of 283 million yuan, up 112.83% year-on-year [2][9]. - The company’s financial forecasts for 2026-2028 indicate substantial growth, with expected revenues of 20.792 billion yuan, 23.238 billion yuan, and 25.684 billion yuan, representing year-on-year growth rates of 101.0%, 11.8%, and 10.5%, respectively [4][26]. - The projected diluted EPS for 2026-2028 is 3.79 yuan, 4.25 yuan, and 4.70 yuan, with corresponding P/E ratios of 15, 13, and 12 [4][26]. Production Capacity and Resources - The company operates five lithium concentrate plants at the Greenbush mine, with a total production capacity of approximately 2.14 million tons per year. The third chemical-grade lithium concentrate plant is expected to ramp up production by the end of January 2026 [3][21]. - The company has established six lithium chemical product production bases with a total capacity of 121,600 tons, including a fully automated battery-grade lithium carbonate plant in Jiangsu [24][25]. - The company holds a 21.90% stake in SQM, which is expected to contribute significantly to its investment income, with SQM's lithium salt sales projected to reach 233,100 tons in 2025, up 13.76% year-on-year [3][26].

Investment Rating - The investment rating for Hainan Mining is "Accumulate-A" with a 6-month target price of 14 CNY, compared to the current stock price of 12.04 CNY as of March 30, 2026 [4]. Core Insights - The company reported a revenue of 4.416 billion CNY for 2025, an increase of 8.62% year-on-year, but a net profit decline of 38.99% to 431 million CNY [1]. - The oil and gas production saw a significant increase, with equity production rising by 60.5% to 12.99 million barrels of oil equivalent, primarily due to the consolidation of Tethys and new wells coming online [2]. - The lithium resource business achieved a breakthrough with the launch of an integrated supply chain, producing 0.26 thousand tons of battery-grade lithium hydroxide in 2025 [3]. Summary by Sections Financial Performance - In Q4 2025, the company achieved a revenue of 1.056 billion CNY, up 18.18% year-on-year and 11.75% quarter-on-quarter, while net profit was 119 million CNY, down 25.84% year-on-year but up 271.9% quarter-on-quarter [1]. - The projected revenues for 2026 to 2028 are 6.909 billion CNY, 7.281 billion CNY, and 8.262 billion CNY, with net profits expected to be 1.117 billion CNY, 1.197 billion CNY, and 1.452 billion CNY respectively [9]. Mining Operations - The iron ore business maintained stable production, with a target of 2 million tons for 2026, supported by the completion of the magnetization roasting project [2]. - The average price for iron ore in 2025 was 102.4 USD/ton, a decrease of 6.5% year-on-year [2]. Oil and Gas Sector - The average price for Brent crude oil in 2025 was 68.2 USD/barrel, down 14.6% year-on-year [2]. - The company plans to achieve an oil and gas equity production target of 12.66 million barrels of oil equivalent in 2026 [2]. Lithium Resource Development - The company completed infrastructure for the Buguni lithium mine in January 2025, with the first batch of 30,000 tons of lithium concentrate expected to arrive in early 2026 [3]. - The lithium hydroxide project is projected to produce 20,000 tons of battery-grade lithium hydroxide, with sales expected to ramp up in 2026 [3]. Strategic Acquisitions - In 2025, the company invested 300 million CNY to acquire a 15.79% stake in Luoyang Fengrui Fluorine Industry, marking its entry into the fluorite mining sector [8]. - A further acquisition plan is set to increase the stake to 85.69% in 2026 [8].

1. Report Industry Investment Rating - Not provided in the document 2. Core Viewpoints of the Report - Yesterday, the lithium carbonate futures contract 2605 rose 4.53% to 171,620 yuan/ton. The average price of battery - grade lithium carbonate increased by 6,500 yuan/ton to 164,500 yuan/ton, the average price of industrial - grade lithium carbonate rose by 6,500 yuan/ton to 161,000 yuan/ton, and the price of battery - grade lithium hydroxide (coarse particles) increased by 5,000 yuan/ton to 151,000 yuan/ton. The warehouse receipt inventory decreased by 709 tons to 30,751 tons [3]. - On the supply side, the weekly production data increased by 628 tons to 24,814 tons; the estimated lithium carbonate production in March increased by 28% to 106,390 tons. On the demand side, the estimated production of ternary materials in March increased by 19% to 84,360 tons; the production of lithium iron phosphate increased by 24% to 430,000 tons. On the inventory side, the weekly social inventory of lithium carbonate increased by 616 tons to 99,489 tons, with downstream inventory increasing by 552 tons to 46,657 tons, other sectors decreasing by 660 tons to 35,500 tons, and upstream inventory increasing by 724 tons to 17,332 tons [3]. - Recently, lithium ore prices have continued to strengthen, reflecting the reality and expectation of a tight supply at the ore end. The market is still worried about the lithium ore supply from Zimbabwe and Australia. If overseas supply - side risk events continue to ferment, the lithium ore supply gap may cause lithium ore prices to continue to strengthen, supporting lithium prices. The reduction in the actual supply of lithium carbonate may lead to inventory reduction, and the amplification of stocking and备货 coefficients may also drive the further invisibility of explicit inventory, driving prices to fluctuate and strengthen. However, it should be noted that from the current spot procurement and sales rhythm and inventory rhythm, if prices strengthen rapidly in the short term, the spot rhythm may slow down, causing a certain degree of divergence between futures and spot prices [3]. 3. Summary by Directory 3.1 Daily Data Monitoring - **Futures**: The closing price of the main contract was 171,620 yuan/ton, up 3,180 yuan from the previous day; the closing price of the continuous contract was 170,060 yuan/ton, up 2,580 yuan [5]. - **Lithium Ore**: The price of lithium spodumene concentrate (6%, CIF China) was 2,313 US dollars/ton, up 83 US dollars; the price of lithium mica (Li2O:1.5% - 2.0%) was 3,575 yuan/ton, up 100 yuan; the price of lithium mica (Li2O:2.0% - 2.5%) was 5,225 yuan/ton, up 175 yuan; the price of lithiophilite (Li2O:6% - 7%) was 13,750 yuan/ton, up 475 yuan; the price of lithiophilite (Li2O:7% - 8%) was 15,000 yuan/ton, up 500 yuan [5]. - **Lithium Carbonate and Lithium Hydroxide**: The price of battery - grade lithium carbonate (99.5% battery - grade/domestic) was 164,500 yuan/ton, up 6,500 yuan; the price of industrial - grade lithium carbonate (99.2% industrial zero - grade/domestic) was 161,000 yuan/ton, up 6,000 yuan; the price of battery - grade lithium hydroxide (coarse particles/domestic) was 151,000 yuan/ton, up 5,000 yuan; the price of battery - grade lithium hydroxide (micropowder) was 157,500 yuan/ton, up 5,000 yuan; the price of industrial - grade lithium hydroxide (coarse particles/domestic) was 139,500 yuan/ton, up 5,000 yuan; the price of battery - grade lithium hydroxide (CIF China, Japan and South Korea) was 18.45 US dollars/kg, up 0.15 US dollars [5]. - **Lithium Hexafluorophosphate**: The price remained unchanged at 107,000 yuan/ton [5]. - **Price Differences**: The price difference between battery - grade lithium carbonate and industrial - grade lithium carbonate was 3,500 yuan/ton, up 500 yuan; the price difference between battery - grade lithium hydroxide and battery - grade lithium carbonate was - 13,500 yuan/ton, down 1,500 yuan; the difference between CIF China, Japan and South Korea battery - grade lithium hydroxide and SMM battery - grade lithium hydroxide was - 23,284 yuan/ton, down 3,812 yuan [5]. - **Precursors and Cathode Materials**: The prices of some ternary precursors decreased slightly, while the prices of some ternary materials and lithium iron phosphate increased [5]. - **Cells and Batteries**: The prices of some cells and batteries increased slightly, while some remained unchanged [5]. 3.2 Chart Analysis - **Ore Prices**: Charts show the price trends of lithium spodumene concentrate (6%, CIF), lithium mica (1.5% - 2.0%), lithium mica (2.0% - 2.5%), and lithiophilite (6% - 7%, 7% - 8%) from 2024 - 2026 [6][9]. - **Lithium and Lithium Salt Prices**: Charts display the price trends of battery - grade metallic lithium , battery - grade lithium carbonate average price, industrial - grade lithium carbonate average price, battery - grade lithium hydroxide price, industrial - grade lithium hydroxide price, and lithium hexafluorophosphate price from 2024 - 2026 [12][14][18]. - **Price Differences**: Charts present the price differences between battery - grade lithium hydroxide and battery - grade lithium carbonate, battery - grade lithium carbonate and industrial - grade lithium carbonate, CIF China, Japan and South Korea battery - grade lithium hydroxide and domestic battery - grade lithium hydroxide, and battery - grade lithium carbonate (CIF) in Asia and domestic battery - grade lithium carbonate from 2024 - 2026 [18][20]. - **Precursors and Cathode Materials**: Charts show the price trends of ternary precursors, ternary materials, lithium iron phosphate, manganese acid lithium, and cobalt acid lithium from 2024 - 2026 [26][28][30]. - **Lithium Battery Prices**: Charts display the price trends of 523 square ternary cells, square lithium iron phosphate cells, cobalt acid lithium cells, and square lithium iron phosphate batteries from 2024 - 2026 [32][36]. - **Inventory**: Charts show the inventory trends of downstream, smelters, and other sectors from July 2025 - March 2026 [39][41]. - **Production Costs**: The chart shows the production profit trends of lithium carbonate from different raw materials such as外购三元极片黑粉,外购磷酸铁锂极片黑粉,外购锂云母精矿, and外购锂辉石精矿 from 2024 - 2026 [44].

Core Viewpoint - Ganfeng Lithium achieved significant financial recovery in 2025, with a revenue of 23.08 billion yuan and a net profit of 1.613 billion yuan, marking a turnaround from losses [1][2] Financial Performance - The company reported a revenue of 23.08 billion yuan, representing a year-on-year increase of 22.08% [1] - Net profit attributable to shareholders was 1.613 billion yuan, indicating a return to profitability [1] - A profit distribution plan was announced, proposing a cash dividend of 1.5 yuan per 10 shares, totaling approximately 315 million yuan [1] Lithium Market Dynamics - In 2025, lithium carbonate prices rebounded by over 24% from their low point, contributing to the recovery of the company's profitability [2] - Non-recurring gains significantly impacted financial results, with nearly 2 billion yuan from the disposal of subsidiary equity and fair value changes from holdings in Pilbara Minerals [2] - The lithium industry is expected to see a widening supply-demand gap in 2026, driven by factors such as the suspension of lithium concentrate exports from Zimbabwe and increased storage demand [3] Business Strategy and Growth - Ganfeng Lithium has established a comprehensive lithium ecosystem, covering resource development, lithium salt processing, battery manufacturing, and recycling [2] - The company is expanding its lithium resource layout globally, with significant production capacity from lithium resources in Argentina, Mali, and Zimbabwe [2] - The lithium battery segment is a key growth area, with a revenue increase of 15.7% in 2025, focusing on power batteries, energy storage batteries, and consumer batteries [4] - The company is advancing solid-state battery technology, having filed over 150 patents and achieving mass production of semi-solid and solid-state batteries [4] - Ganfeng Lithium aims to enhance its global resource layout and expand lithium salt and battery production capacity, leveraging its full industry chain advantages [4]

1. Report Industry Investment Rating - Not provided in the content 2. Core Viewpoints of the Report - In 2026, the global lithium resources are near a tight balance. With the expansion of the demand base, the available inventory days will show a downward trend, and the lithium price center should rise marginally [105][116]. - In Q2 2026, both supply and demand of lithium carbonate will increase. It is still expected to reduce inventory, but the reduction amplitude may decline compared to Q1. In Q3, if the supply from Zimbabwe and Jianxiaowo resumes, inventory may accumulate, but inventory reduction is expected again at the end of the year due to export rush [105][116]. - The price of lithium carbonate in Q2 2026 may fluctuate widely between 125,000 - 250,000 yuan/ton, with a center around 140,000 - 180,000 yuan/ton. It is recommended to pay attention to the opportunity of buying on dips after a correction [116]. 3. Summary According to Relevant Catalogs 3.1 Market Review - In Q4 2025, the explosion of energy - storage demand and the less - than - expected resumption of production at Jianxiaowo drove the rapid increase of lithium carbonate prices. In Q1 2026, the market continued to rise sharply and then entered a wide - range shock [7]. - In early and mid - January 2026, due to multiple factors such as Trump's attack on Venezuela, cathode material manufacturers' joint production cut to support prices, the implementation of the export tax - rebate cancellation policy, and the resurgence of the Jiangxi mining license issue, the market price soared from 125,000 yuan/ton at the beginning of the month to a high of 189,000 yuan/ton, a 51% increase [7]. - From mid - to late January to early February 2026, due to exchange macro - regulation and Trump's nomination of Wash, which triggered concerns about balance - sheet reduction, the market price dropped to a minimum of 124,000 yuan/ton by early February, a 34% decline [7]. - After the Spring Festival to late February 2026, downstream demand recovered after the Spring Festival, and SMM inventory decreased significantly for several consecutive weeks. On February 25th, Zimbabwe announced a suspension of all lithium ore exports, and the next day the market price jumped up, reaching a maximum of 188,000 yuan/ton, with a 52% increase in this stage [7]. - Since late February 2026, after the US - Israel's strike on Iran on February 28th and Iran's closure of the Strait of Hormuz, the non - ferrous metals sector fell collectively. Subsequently, the market price fluctuated widely between 140,000 - 170,000 yuan/ton. Recently, the continuous postponement of Zimbabwe's resumption time has again raised market concerns about supply [7]. 3.2 Supply Analysis 3.2.1 Global Lithium Resource Production - In 2025, the global lithium resource production was about 1.675 million tons LCE. In 2026, it is expected to be about 2.207 million tons LCE, with an increase of 532,000 tons [8][9]. - In Q1 - Q4 2026, the global lithium resource production is expected to be 478,000 tons, 527,000 tons, 590,000 tons, and 613,000 tons LCE respectively [8]. 3.2.2 Regional Supply - **Australia**: The annual production of Australian mines will increase by 60,000 tons to 520,000 tons LCE. Some mines have adjusted their production guidance upwards, while some mines are currently shut down or plan to restart [8][10][12]. - **America**: The annual production of American spodumene will increase by 11,000 tons to 84,000 tons LCE, and the annual production of American salt lakes will increase by 84,000 tons to 510,000 tons LCE [8][9][15]. - **Africa**: The annual production in Africa will increase by 140,000 tons to 380,000 tons LCE. The main increments come from pre - built mines, and some new mines are planned to be put into production [8][9][16]. - **China**: The annual production of Chinese spodumene will increase by 55,000 tons to 132,000 tons LCE, the annual production of Chinese salt lakes will increase by 100,000 tons to 260,000 tons LCE, and the annual production of Chinese mica will increase by 50,000 tons to 195,000 tons LCE [8][9][24]. 3.2.3 Supply Disruptions - On February 25th, Zimbabwe announced a suspension of all raw ore and lithium concentrate exports. It is expected to affect the monthly supply by 12,000 tons LCE, and the resumption time is still to be determined [22]. 3.3 Demand Analysis 3.3.1 New Energy Vehicle Market - **China**: In 2025, the domestic sales of Chinese passenger cars were 12.996 million, with a penetration rate of 54%. In 2026, it is expected to be 13.37 million, with a penetration rate peak of 65%. The domestic sales of Chinese commercial vehicles were 863,100 in 2025, and it is expected to be 1.232 million in 2026, with a penetration rate peak of 47% [42][46]. - **Europe**: It is expected that the high - growth trend in 2026 will continue, with a year - on - year increase of 30% to 5.27 million vehicles [54]. - **North America**: It is estimated that the sales of new energy vehicles in North America will decline by 10% to 1.57 million vehicles in 2026 [55]. 3.3.2 Energy - Storage Market - **China**: In 2024 - 2025, the winning bids for new energy storage in China were 171 GWh and 420 GWh respectively, with year - on - year increases of 52% and 145%. In 2025, the new installed capacity was 197 GWh, with a year - on - year increase of 84%. In 2026, it is expected to continue to grow [68]. - **USA**: In 2025, the new installed capacity of energy storage in the US was 50.99 GWh, with a year - on - year increase of 40%. It is expected to increase by 27% and 3% in 2026 - 2027 [73]. - **Europe**: In 2025, the new installed capacity of electrical energy storage in Europe was 27 GWh, with a year - on - year increase of 45%. It is expected to increase by 46% and 42% in 2026 - 2027 [73]. 3.3.3 Cathode Material and Cell Market - In January - February 2026, the production of lithium iron phosphate cathode materials was 745,000 tons, a year - on - year increase of 55%; the production of ternary cathode materials was 152,000 tons, a year - on - year increase of 48% [86]. - In January - February 2026, the production of power cells was 222 GWh, a year - on - year increase of 31%; the production of energy - storage cells was 119 GWh, a year - on - year increase of 91% [86]. 3.4 Inventory Analysis - **Overseas**: The inventory days of Australian mines have dropped to about 1 month [91]. - **Domestic**: As of the end of February, the lithium ore inventory of domestic sample lithium salt plants was 114,000 tons LCE, with inventory days of 1.4 months, and the mine inventory was only 8,000 tons LCE. The inventory of domestic spodumene is about 140,000 tons LCE, and the inventory days have dropped to about 2 months [91]. - **Market Inventory**: The overall/upstream/downstream/mid - stream SMM inventory as of March 26th was 99,000/17,000/46,000/36,000 tons respectively, with inventory days of 27.9/4.9/13.1/10 days respectively. There is also off - balance - sheet inventory, but its magnitude has a large variance [92]. 3.5 Profit Analysis - For new energy vehicle enterprises, when the lithium carbonate price rises to 206,800 yuan/ton, the net profit of leading new energy vehicle enterprises will reach zero. High costs may lead to negative demand feedback in the long run [111][112]. - For the energy - storage market, after the implementation of the capacity - price mechanism policy, taking Shanxi Province as an example, the internal rate of return (IRR) of energy storage can reach 7.85%. If the energy storage only needs to meet the minimum rate of return of 6.5%, the acceptable increase in the cell price is 0.05 yuan/Wh, and the acceptable increase in the lithium carbonate price is 100,000 yuan/ton [115].

1. Report Industry Investment Rating - No information about the industry investment rating is provided in the report. 2. Core Views of the Report - The supply side of lithium carbonate has increased, with last week's production at 24,814 tons, 59% higher than the historical average. The demand side shows an increase in the inventory of sample enterprises of lithium iron phosphate and ternary materials. The cost side varies, with different production profits for different raw materials. The overall inventory is increasing, and the 2605 contract is expected to fluctuate in the range of 167,160 - 177,280 [8]. - There are both positive and negative factors in the market. Positive factors include the production cut plan of lithium mica manufacturers and the decrease in the import volume of lithium carbonate from Chile. Negative factors include the high - level supply from ore and salt lake ends with limited decline [9][10]. - The main logic is the emotional shock caused by news under the tight supply - demand balance [11]. 3. Summary According to the Directory 3.1 Daily Views - **Fundamentals**: Supply increased last week, with lithium carbonate production at 24,814 tons, 59% higher than the historical average. The inventory of lithium iron phosphate and ternary materials sample enterprises increased. The cost of purchased lithium spodumene concentrate is 159,158 yuan/ton, with a loss of 2,142 yuan/ton; the cost of purchased lithium mica is 151,428 yuan/ton, with a profit of 3,273 yuan/ton. The cost of the salt lake end is significantly lower than that of the ore end, with sufficient profit margins [8]. - **Basis**: On March 30, the spot price of battery - grade lithium carbonate was 164,500 yuan/ton, and the basis of the 05 contract was - 7,120 yuan/ton, showing a spot discount [8]. - **Inventory**: The smelter inventory was 17,332 tons, a 4.36% increase, lower than the historical average; the downstream inventory was 46,657 tons, a 1.20% increase, higher than the historical average; other inventories were 35,500 tons, a 1.82% decrease, lower than the historical average; the total inventory was 99,489 tons, a 0.62% increase, lower than the historical average [8]. - **Disk**: The MA20 is downward, and the futures price of the 05 contract is above the MA20, showing a neutral situation [8]. - **Main Force Position**: The net short position of the main force is decreasing, showing a bearish situation [8]. - **Expectation**: In February 2026, the production of lithium carbonate was 83,090 physical tons, and it is predicted that next month's production will be 106,390 physical tons, a 28.04% increase. The import volume is expected to increase by 19.27%. Next month's demand is expected to strengthen, and inventory may be depleted. The CIF price of 6% concentrate has increased daily, and the demand - leading situation has weakened. The 2605 contract is expected to fluctuate in the range of 167,160 - 177,280 [8]. 3.2 Market Overview - **Upstream Prices**: The prices of lithium spodumene, lithium mica concentrate, and other upstream products have increased to varying degrees. For example, the price of lithium spodumene (6%) increased from 2,230 to 2,313 US dollars/ton, a 3.72% increase [14]. - **Disk Prices and Basis**: The prices of various lithium salts, cathode materials, and lithium batteries have changed. For example, the price of battery - grade lithium carbonate increased from 158,000 to 164,500 yuan/ton, a 4.11% increase [14]. 3.3 Supply - Related - **Lithium Ore**: The price of lithium ore (6% CIF) has changed over time. The production of lithium spodumene mines and lithium mica in China has different trends. The import volume of lithium concentrate has decreased, and the self - sufficiency rate of lithium ore has also changed [24]. - **Lithium Carbonate**: The weekly and monthly production, capacity, and import volume of lithium carbonate from different sources (lithium spodumene, lithium mica, salt lake, and recycling) have different trends and changes [31]. - **Lithium Hydroxide**: The weekly capacity utilization rate, monthly production, and export volume of lithium hydroxide have changed. The production from smelting and causticizing sources also shows different trends [40]. 3.4 Cost - Profit of Lithium Compounds - The cost and profit of purchased lithium spodumene concentrate, lithium mica concentrate, and recycled materials for lithium carbonate production have changed over time. The processing cost composition of lithium mica and lithium spodumene also shows different proportions [46]. - The profit of lithium carbonate import, industrial - grade lithium carbonate purification, and lithium hydroxide carbonation to lithium carbonate has changed [46][49]. 3.5 Inventory - The weekly and monthly inventory of lithium carbonate and lithium hydroxide from different sources (smelter, downstream, etc.) has changed. The number of lithium carbonate warehouse receipts has also increased [54]. 3.6 Demand - Related - **Lithium Battery - Power Battery**: The price, production, loading volume, and export volume of power batteries have changed. The cost of power battery cells has also changed [57]. - **Lithium Battery - Energy Storage**: The inventory, winning bid situation, production, and cost of energy - storage batteries have changed [59]. - **Ternary Precursor**: The price, cost, processing fee, capacity utilization rate, and production of ternary precursors have changed. The supply - demand balance also shows different situations [62][65]. - **Ternary Material**: The price, cost, profit, processing fee, production, and inventory of ternary materials have changed [70][73]. - **Phosphoric Acid Iron/Phosphoric Acid Iron Lithium**: The price, production cost, profit, capacity, and production of phosphoric acid iron and phosphoric acid iron lithium have changed [74]. - **New Energy Vehicle**: The production, sales, export volume, and sales penetration rate of new energy vehicles have changed [82].

Investment Rating - The industry investment rating is "Outperform the Market" [4] Core Views - Lithium supply disturbances are intensifying while demand continues to exceed expectations. As of the latest week, the spot price of lithium carbonate is 158,000 CNY/ton, and the 2605 contract closing price is 168,440 CNY/ton. Weekly inventory has shifted from depletion to accumulation, with an increase of 616 tons as of March 26, due to higher operating rates at lithium salt plants post-Spring Festival and concentrated arrivals from Chile. This accumulation is expected to ease by mid-April [12][13]. - Supply-side disruptions are worsening, with delays in the resumption of mining operations in Jiangxi and ongoing negotiation issues in Zimbabwe affecting exports. Additionally, there are risks of diesel shortages in Australia impacting future mining production. Starting from late April, there may be risks of raw material shortages in domestic mining due to import shipping schedules [12][13]. - Demand is exceeding expectations, driven by the logic of new energy alternatives amid high oil prices. Although domestic vehicle sales showed negative growth in Q1, the increase in battery capacity per vehicle has completely offset this. Furthermore, the performance of heavy trucks and exports remains strong. With international oil prices remaining high, the penetration rate of new energy vehicles is expected to increase further, and the economic viability of solar storage is becoming more prominent, potentially leading to long-term demand growth beyond expectations [12][13]. - The report maintains a positive outlook on the profitability and valuation of lithium mining stocks, anticipating a "Davis Double" effect. The performance of lithium mining companies in Q1 and Q2 is expected to continue to deliver results, and the report remains optimistic about this sector [12][13]. Summary by Sections Lithium - Supply disturbances are increasing, and demand remains strong. The current spot price of lithium carbonate is 158,000 CNY/ton, with a contract price of 168,440 CNY/ton. Inventory has shifted to accumulation, with 616 tons added as of March 26, due to increased production rates and arrivals from Chile. Supply disruptions include delays in Jiangxi mining operations and issues in Zimbabwe affecting exports. There are also risks of diesel shortages in Australia impacting production. Demand is exceeding expectations, with strong performance in heavy trucks and exports, and the penetration of new energy vehicles is expected to rise further [12][13]. Gold - The situation is changing with ongoing chaos in pricing due to the US-Iran conflict. Oil prices have risen above 100 USD, and gold prices are expected to trend upwards in the medium to long term due to inflation and geopolitical tensions. Short-term liquidity issues may still pressure gold prices, but the mid-term inflation risks have improved the outlook for gold [13]. Aluminum - Supply disturbances in the Middle East are escalating, with production capacity being damaged. The Iranian Revolutionary Guard has attacked key aluminum plants in the UAE and Bahrain, leading to significant production losses. The ongoing blockade of the Strait of Hormuz poses further risks to aluminum production. As seasonal consumption recovers, the risk of rising aluminum prices is significant, and the report highlights the attractiveness of aluminum stocks [14].

1. Report Industry Investment Rating No information provided regarding the industry investment rating. 2. Core Viewpoints - Supply side: Last week, lithium carbonate production was 24,814 tons, a 2.59% week - on - week increase, higher than the historical average. In February 2026, production was 83,090 physical tons, and next month's production is forecasted to be 106,390 tons, a 28.04% increase. February's import volume was 21,800 physical tons, and next month's is predicted to be 26,000 tons, a 19.27% increase [8][9]. - Demand side: Last week, the inventory of lithium iron phosphate sample enterprises was 107,734 tons, a 0.95% week - on - week increase, and the inventory of ternary material sample enterprises was 18,992 tons, a 3.08% increase. Next month's demand is expected to strengthen, and inventory may be depleted [8][9]. - Cost side: The CIF price of 6% concentrate increased daily, lower than the historical average. The cost of purchasing lithium spodumene concentrate was 159,158 yuan/ton, a 0.89% daily increase, resulting in a loss of 3,183 yuan/ton. The cost of purchasing lithium mica was 151,428 yuan/ton, a 3.96% daily increase, with a profit of 1,295 yuan/ton. The production cost on the recycling end is generally higher than that on the ore end, with negative production income. The quarterly cash production cost on the salt lake end is 32,231 yuan/ton, significantly lower than the ore end [9][10]. - Market outlook: Lithium carbonate 2605 will fluctuate in the range of 164,220 - 174,540. The main logic is the emotional shock caused by news under the tight supply - demand balance. The main risk points are the impact of shutdown, production reduction, or maintenance plans and the start time of industry clearance [9][13][14]. 3. Summary by Directory 3.1 Daily Viewpoints - Supply and demand: Supply is increasing, and demand shows a certain upward trend in inventory. The overall supply - demand relationship is in a state of tight balance [8][9]. - Cost and profit: The cost of lithium spodumene has increased, resulting in a loss, while the cost of lithium mica has also increased, but there is still a profit. The cost on the salt lake end is low, with sufficient profit margins [10]. - Market sentiment: There are both positive and negative factors. Positive factors include the production reduction plan of lithium mica manufacturers and the decrease in lithium carbonate imports from Chile. Negative factors are the continuous high supply on the ore/salt lake end with limited decline [11][12]. 3.2 Fundamental/Position Data - **Market data**: The closing prices of various lithium - related products showed different degrees of increase. For example, the closing price of 01 lithium carbonate futures was 169,380 yuan/ton, a 7.00% increase from the previous value. The price of lithium spodumene (6%) was 2,230 US dollars/ton, a 0.90% increase [16]. - **Supply - side data**: The weekly operating rate of lithium carbonate was 0.96% higher than the previous value. The monthly production of lithium carbonate decreased by 15.13%. The production of various sources such as lithium spodumene, lithium mica, and salt lake all decreased to varying degrees [19]. - **Demand - side data**: The monthly operating rate of lithium iron phosphate and other products decreased. The monthly production of lithium iron phosphate decreased by 12.20%. The monthly power battery loading volume decreased by 37.38% [19]. - **Inventory data**: The total inventory of lithium carbonate was 99,489 tons, a 0.62% week - on - week increase, lower than the historical average. The inventory of downstream enterprises was 46,657 tons, a 1.20% increase, higher than the historical average [10][19].