Lithium sector stocks continued their recent rebound. At the time of writing, Ganfeng Lithium Group Co., Ltd. (01772) rose 6.03% to HK$69.5, while Tianqi Lithium Corporation (09696) gained 2.76% to HK$46.22. The uptick follows reports late on March 23 that Zimbabwe's ban on exports of lithium concentrate has escalated. Although the Zimbabwean government had previously planned a full ban on concentrate exports by 2027, it unexpectedly announced in late February an indefinite suspension of all raw ore and lithium concentrate exports, with the situation continuing to intensify. Some analysts suggest the export ban’s impact may last longer than the market initially anticipated. Industrial Securities noted that downstream battery cell demand remains high. Meanwhile, supply-side uncertainties persist due to ongoing disruptions in mining license renewals in Jiangxi. Against a backdrop of strong spot demand, slower-than-expected resumption of lithium mining, and export restrictions from Zimbabwe, lithium prices are expected to remain volatile with an upward bias in the short term. Over the medium term, supported by stronger-than-expected growth in energy storage demand domestically and abroad, coupled with a slowdown in supply growth, lithium carbonate supply and demand are projected to stay tight, with prices likely to trend higher amid fluctuations.
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