Morgan Stanley: The lithium market is expected to remain tight.

Morgan Stanley expects the lithium market to remain tight in the short term. The bank stated that pure electric car sales in China rebounded significantly in May, increasing by 13% month-on-month. Morgan Stanley also emphasized strong growth in global energy storage system shipments and the momentum of China's truck electrification. However, supported by rising prices, lithium supply is also expected to rebound. Morgan Stanley highlighted the resumption of lithium exports from Zimbabwe and the restart of some mines in Australia, while also mentioning that spodumene expansion projects are starting to emerge. The bank maintains a neutral rating on Australian company PLS compared to its peer IGO, showing a preference for PLS. Morgan Stanley has a sell rating on IGO, citing risks in the lifespan plan of the Greenbushes mine and the ramp-up of CGP3 production capacity.