Multiple technical challenges in lithium extraction from lithium mica have been overcome, leading to a tight supply and demand situation for lithium carbonate.

Multiple technical challenges in lithium extraction from lithium mica have been overcome, providing a strong boost to the domestic supply of lithium resources. According to Science and Technology Daily, the project "Research and Development of Efficient Lithium Extraction Technology and Equipment from Lithium Mica" led by China Aluminum International Chengdu Nonferrous Metallurgy Design Research Institute Co., Ltd. has successfully addressed major technical issues that have long plagued lithium extraction from lithium mica in China, such as equipment corrosion, ring formation in rotary kilns, and low recovery rates, achieving large-scale industrial production. This marks a key step towards the high-value utilization of China's complex, low-grade lithium mica resources. On the supply side, recently, Zhongmin Resources, Tianhua New Energy, and Jiuling Lithium Industry announced their plans for production suspensions and maintenance for their lithium carbonate production lines from August to September. This concentrated maintenance will result in a temporary reduction in supply. While there is a short-term contraction in supply, downstream consumption of lithium carbonate remains strong, with energy storage batteries contributing to a second growth engine for demand. In the first half of this year, the price of lithium carbonate has rebounded significantly. According to Wind data, the average price of battery-grade lithium carbonate in the first half of the year was 163,400 yuan/ton, compared to 70,400 yuan/ton in the first half of 2025, indicating a doubling in price. The performance of lithium mining stocks has been lifted accordingly, with statistics showing that 22 lithium mining stocks have issued related announcements regarding their semi-annual performance. Five lithium mining stocks returned to profitability in the first half of the year, and 12 companies reported year-on-year growth in net profit attributable to the parent, with more than 70% reporting positive results. From a funding perspective, since August, 10 lithium mining stocks have seen net buying in financing, with Western Mining, Keda Manufacturing, and Zhongmin Resources leading in net buying amounts of 363 million yuan, 76 million yuan, and 50 million yuan, respectively.