HK Stock Market Move | Lithium stocks rose again, short-term supply disruptions combined with strong demand, institutions predict that lithium prices are expected to break out of the bottom range.

Lithium stocks rose again in the morning session, as of the time of publication, Tianqi Lithium Corporation (09696) rose by 6.3% to 32.9 Hong Kong dollars; Ganfeng Lithium Group (01772) rose by 5.16% to 26.5 Hong Kong dollars. On the news front, on the morning of July 18, the main contract for lithium carbonate futures rose by more than 4%, currently at 70,420 yuan/ton. Since June 23, the price of this contract has been on the rise. According to an announcement by Zangge Mining, the company received a notice from the Natural Resources Department and the Salt Lake Management Bureau of Haixi Prefecture on July 16, 2025, instructing the company to immediately stop the development and utilization of lithium resources. The notice requires the company to immediately stop illegal mining activities and actively rectify the situation, improve the legal procedures for lithium resource development. The subsidiary Zangge Lithium has halted production, and Zangge Mining is actively promoting the processing of lithium resource mining procedures. After the completion of the lithium resource mining procedures, the company will promptly apply to the Salt Lake Management Bureau of Haixi Prefecture for resuming production. CITIC SEC believes that this reflects a trend towards stricter examination of mining rights compliance in the domestic mineral industry. Most local governments in China pay attention to violations and illegal activities in the mining sector. If there are signs of mining rights compliance risks spreading, it cannot be ruled out that other lithium extraction companies in Qinghai or Yichun lithium-mica extraction companies may stop production, which will have a significant impact on the domestic lithium resource 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, the bank expects the lithium price to move out of the bottom range.