HK Stock Market Move | Lithium carbonate futures hit 178,000 yuan, Ganfeng Lithium Group (01772) rises more than 6%, Tianqi Lithium Corporation (09696) rises more than 3%

Lithium mining stocks rose in early trading. As of the time of writing, Ganfeng Lithium Group (01772) rose by 6.45% to HK$69.35, and Tianqi Lithium Corporation (09696) rose by 3.42% to HK$57.45. On the news front, on January 23rd, the main contract for lithium carbonate on the Guangqi Exchange rose by more than 5% at one point, reaching a high of 178,000 yuan/ton. A report from J.P. Morgan pointed out that the bank conducted a field visit in Yichun last week, visiting lithium refining plants/tailings facilities and meeting with local experts. The main observations included: the restart schedule for the Xinqi lithium mine under Contemporary Amperex Technology is still uncertain, and lithium prices will remain high before its restart; the cost of lithium carbonate from integrated lithium mica mines has dropped to 60,000 yuan/ton; current prices are inducing more supply, and recycling volumes will significantly increase by 2028. J.P. Morgan stated that they are more optimistic about short-term lithium prices, but more cautious about the medium-term outlook. The low cost of lithium mica impressed the bank, and they expect costs to further decline in the future. They see trading opportunities in short-term lithium stocks, as stock prices are expected to catch up with the rise in lithium carbonate prices. J.P. Morgan expects lithium prices to remain high as investors delay their expectations for mine restarts.