Lithium stocks trended lower in the morning trading session. GANFENGLITHIUM (01772) fell 4.25% to HKD 76.6, while TIANQI LITHIUM (09696) declined 3.54% to HKD 57.2.
Market data from May 13 showed that the average spot price for battery-grade lithium carbonate officially returned to the CNY 200,000 per tonne threshold, reaching CNY 201,400 per tonne. A representative from Yahua Group indicated that demand in the energy storage market has been established, clearly becoming a second growth curve alongside power batteries.
On May 14, the main lithium carbonate futures contract fell by 4% intraday to CNY 193,720 per tonne. Guotai Haitong Securities noted that the supply and demand for lithium carbonate is expected to shift from a loose balance to a tight balance by 2026. Supply-side disruptions have intensified by May. The firm pointed out that with lithium carbonate at CNY 200,000 per tonne, the internal rate of return on capital for some energy storage projects in certain provinces falls below 6%, potentially impacting part of the demand.
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