CITIC Securities: Production halts at Qinghai lithium salt lake, lithium prices expected to break out of the bottom range.

CITIC Securities pointed out that, according to an announcement from Tibet Mineral, its subsidiary Tibet Lithium Industry has suspended production and rectification due to illegal mining of lithium resources. CITIC Securities believes that this reflects the increasing strictness of the domestic mining industry's scrutiny of the compliance of mining rights. Most local governments in China attach great importance to illegal activities in the mining sector. If there are signs of potential risks in mining rights compliance spilling over, it cannot be ruled out that other lithium extraction companies in Qinghai or Yichun Lithium Mica may also have production suspensions, significantly impacting the domestic lithium supply. In the long term, the lithium price of 60,000-70,000 yuan/ton has strong cost support, combined with short-term supply disturbances and strong demand, it is expected that the lithium price will likely move out of the bottom range.