Lithium Carbonate Futures Surge Over 7.8%, Boosting Lithium Stocks in Hong Kong and A-Shares

On December 17, lithium-related stocks in both Hong Kong and A-shares markets rallied, reflecting active trading sentiment. In Hong Kong, leading lithium miners led the gains. By the time of writing, Tianqi Lithium Corporation (HK:9696) surged 6.61%, Ganfeng Lithium Group Co., Ltd. (HK:1772) rose 6.46%, and CALB (HK:3931) climbed 1.09%. Other stocks like CATL (HK:03750) and TIANNENG POWER (HK:00819) also advanced.

In the A-share market, lithium-related stocks similarly gained momentum. Jinyuan Ep Co., Ltd. (SZ:000546) and Chengxin Lithium Group Co., Ltd. (SZ:002240) both hit the daily limit-up, while Canmax Technologies Co., Ltd. (SZ:300390) soared 14.33%. Sinomine Resource Group Co., Ltd. (SZ:002738) rose 7.37%, Tianqi Lithium Corporation (SZ:002466) gained 5.75%, and Ganfeng Lithium Group Co., Ltd. (SZ:002460) increased 5.12%.

The sharp rise in lithium carbonate prices served as a key catalyst for the sector's rally. On December 17, the main lithium carbonate futures contract surged over 7.8%, directly boosting market sentiment. Since late June this year, lithium carbonate prices have rebounded, reversing their previous downtrend, with cumulative gains exceeding 80% from the year's low.

In the spot market, data from Business Society showed that battery-grade lithium carbonate benchmark prices approached the 100,000 yuan/ton mark, up nearly 37% from mid-October's 73,000 yuan/ton, supported by supply disruptions and resilient demand.

Supply-side disruptions have intensified concerns over lithium shortages, further driving price increases. Following the shutdown of CATL's Xianxiawo mine, Yichun, known as the "Lithium Capital of Asia," announced plans to revoke 27 mining licenses, including Jiangte Motor's Yifeng County Shiziling lithium-bearing porcelain stone mine. Analysts suggest that supply tightening may sustain lithium carbonate prices in the near term.

Strong demand-side resilience also underpins price strength. Shanghai Dalu Futures noted that lithium salt producers are actively restocking amid rising prices, with miners auctioning supplies and traders holding firm on pricing. Fast consumption rates and robust procurement needs have fueled bullish sentiment.

Looking ahead, institutions generally expect lithium carbonate prices to maintain an upward trend. Huatai Futures highlighted supply uncertainties as a key bullish factor, while Everbright Futures pointed to weaker-than-expected production resumptions and strong downstream demand, suggesting prices may remain elevated despite seasonal fluctuations. Investors are advised to monitor supply-demand dynamics and seasonal inventory adjustments.