HK Stock Market Move | Lithium stocks continue recent rebound, lithium carbonate prices stabilize and rise, global lithium carbonate is expected to maintain a tight balance between supply and demand.

Lithium stocks continued to rebound recently. As of the time of writing, Ganfeng Lithium Group (01772) rose by 6.62% to HK$72.5, while Tianqi Lithium Corporation (09696) rose by 3.33% to HK$46.48. On the news front, data from the Shanghai Nonferrous Network showed that on March 24th, the average prices of battery-grade lithium carbonate and industrial-grade lithium carbonate were 147,500 yuan/ton and 144,500 yuan/ton respectively, both up by 1,000 yuan/ton from the previous day. Looking at a longer period, lithium carbonate prices have risen by over 140% from their low point in June 2025. Industry insiders believe that the rise in lithium carbonate prices is the result of a combination of disturbances on the mineral supply side, changes in expectations, and supply-demand dynamics. Huatai believes that the liquidity squeeze caused by the Middle East events and changes in risk appetite led to the previous weak and volatile operation of lithium prices. However, considering the potential supply disturbances in the Yichun region in the second half of the year and in overseas regions such as Zimbabwe, as well as the boost in demand expectations for electric vehicles and energy storage due to high oil prices, global lithium carbonate is expected to maintain a tight balance of supply and demand in 2026 if we assume a neutral scenario (with a year-on-year growth rate of 10%-15% for global new energy vehicle sales and a year-on-year growth rate of 50%-60% for energy storage battery shipments).