Movement Alert|Tianqi Lithium Falls 4.84% in Regular Trading, Supply Disruption Expectations Continue Fading Amid Tax Audit Overhang and Sector Weakness

Market Focus06-22

On June 22, Tianqi Lithium fell 4.84% in regular trading, trading at HK$42.0/share, with turnover of HK$47.18 million. The decline extends a multi-session retreat as the supply disruption narrative tied to the Greenbushes fire continues to unwind, compounded by a newly disclosed tax audit risk.

The company's subsidiary Talison experienced a localized fire at its third-phase chemical-grade lithium concentrate plant in Australia during maintenance. Tianqi Lithium has confirmed that main equipment and production lines were unaffected and operations remain normal. The facility had only produced its first qualified output in late January and remains in the ramp-up phase. With the company's explicit reassurance, supply disruption expectations that had previously lifted the stock have progressively dissipated, triggering sustained profit-taking.

Additionally, Tianqi Lithium's joint venture TLEA faces a tax audit from the Australian Taxation Office, with potential taxes and penalties totaling approximately AUD 170 million. JPMorgan also reduced its long position in Tianqi Lithium H-shares from 14.25% to 13.58%. Within the Specialty Chemicals sector, Ganfeng Lithium fell 3.39% on the same day, reflecting broad lithium sector pressure.

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