Daiwa: Production halt of Ningde era (03750.HK) Yichun lithium mine may drive up lithium prices, benefiting inventory value enhancement.

According to the Wisdom Financial APP, Morgan Stanley released a research report stating that the mining license for the Yichun Jianxiawo Lithium Mine, a subsidiary of Contemporary Amperex Technology (CATL), with an annual production capacity of 100,000 tons of lithium carbonate equivalent, has expired, and production has currently been suspended. The bank is optimistic that, due to its scale advantage, CATL's contract lithium prices are still more competitive than those of small and medium-sized battery manufacturers. With the ability to transfer rising costs to automobile manufacturers, the bank maintains a "Buy" rating with a target price of 465 Hong Kong dollars.