Galaxy Securities: Lithium supply contraction may lead to further price increases for lithium salts.

Galaxy Securities Research Report believes that the mining license for the kaolin mine under Jinxia Wo in CATL will expire on August 9th. According to the situation where the renewal of the mining license on July 1st involves the verification of reserves due to a change in the mineral type, it is expected that the Jinxia Wo mine may be suspended for a long time. The monthly lithium carbonate production of the Jinxia Wo kaolin mine is around 10,000 tons of LCE. The suspension of the Jinxia Wo mine will affect nearly 12% of the domestic lithium carbonate production, improving the oversupply situation in the lithium salt industry. The Yichun Natural Resources Bureau issued a notice requiring 8 lithium mining enterprises to complete the preparation of reports verifying the reserves due to a change in the mineral type before September 30th. After the suspension of the Jinxia Wo kaolin mine, market expectations for the suspension of the other 7 lithium mica mines may increase, bringing about a stronger expectation of lithium supply contraction. The disturbance in the lithium mine supply side, combined with the catalysis of high-quality development and the "anti-trend" policy in the industry, may lead to further increases in lithium salt prices.