HK Stock Market Move | Lithium battery concept stocks fell again, as new production capacity on the supply side was released. Market expectations of strong industry demand have been shattered.

Lithium concept stocks fell again, as of press time, Contemporary Amperex Technology (03750) fell by 6.82% to 594 Hong Kong dollars; Tianqi Lithium Corporation (09696) fell by 4.15% to 33.76 Hong Kong dollars; CALB (03931) fell by 3.17% to 21.4 Hong Kong dollars; Ganfeng Lithium Group (01772) fell by 3.16% to 41.72 Hong Kong dollars; Jiangsu Lopal Tech. Group (02465) fell by 3.08% to 10.06 Hong Kong dollars. On the news front, recently, according to market media reports, the largest lithium ore processing plant in West Africa has officially started production and operation in the state of Nasarawa, with a reported annual production capacity of 3 million tons, equivalent to about 30,000 tons of lithium carbonate equivalent. Industry insiders analyze that Contemporary Amperex Technology obtained a safety production permit and with the start of production of the West African lithium mine, new supply capacity has been released, breaking the "tight balance" expectation. In addition, the slowdown in the growth rate of new energy vehicle production and sales on the demand side, along with destocking in the industrial chain, has created a "surplus supply and weak demand" situation. As a cyclical growth variety, the market is accelerating industry consolidation through price corrections, forcing high-cost production capacity to exit and prepare for the next cycle. An analyst from Qianhai Kaiyuan Fund stated in an interview that the supply-demand relationship of lithium carbonate has changed, breaking the previous expectations of strong demand, which has led to a sharp decline in lithium carbonate futures prices, directly causing a significant drop in the lithium mining sector index, with this round of sector adjustment mainly related to short-term futures price fluctuations.