To The Moon

Lithium-related equities are under pressure in Hong Kong trading. As of press time, TIANQI LITHIUM (09696) has fallen 3.51% to HK$50.85, while GANFENGLITHIUM (01772) is down 3.03% at HK$54.35. Driving the decline, the main lithium carbonate futures contract on the Guangzhou Futures Exchange extended losses in afternoon trading on December 29, plummeting to the daily price limit by the close. Adding to market sentiment, CATL hosted its supplier conference in Ningde, Fujian on December 28, where the battery giant announced plans to mass-adopt sodium-ion batteries by 2026 across swappable battery systems, passenger vehicles, commercial vehicles, and energy storage sectors—fueling expectations of a "sodium-lithium dual boom" trend. Additionally, sources familiar with the matter indicate that Yichun Times New Energy Mining Co., Ltd.'s lithium mining project spanning Zhenkouli (Yifeng County) and Jianxiawo (Fengxin County) is slated to resume operations around the Spring Festival. Meanwhile, Daiwa Securities notes that尽管市场已预期宁德时代明年锂产能将提升，当前锂期货价格似乎仅反映了短期供需关系改善的影响。Given projections of increased lithium supply in the first half of next year and a potential quarter-on-quarter dip in Q1 demand, the brokerage anticipates lithium prices will face headwinds to further gains early in 2024.