Lithium Stocks Surge as Supply Disruptions Draw Market Attention

Shares of lithium companies surged in Hong Kong trading, with Tianqi Lithium jumping 17% and Ganfeng Lithium climbing 12%, as investors reacted to fresh concerns over supply disruptions.

The rally followed news that the Yichun Natural Resources Bureau has requested eight lithium mica mines to submit updated resource verification reports by the end of September. Additionally, a subsidiary of Zangge Mining received a notice from the Haixi Prefecture Natural Resources Bureau to halt lithium resource development.

Meanwhile, the main lithium carbonate futures contract on the Guangzhou Futures Exchange continued to climb, with intraday gains expanding to 7%.

Guotai Junan Securities and Haitong International noted that short-term supply shocks may continue to support market sentiment. They believe lithium prices still have upside momentum in the near term, driven by policy and sentiment, although the long-term oversupply situation remains unresolved.

Minsheng Securities added that production expectations in the new energy sector have improved in July, further boosting investor confidence. The National Audit Office also recently highlighted irregularities in Jiangxi’s lithium resource licensing procedures. On the supply side, several lithium carbonate producers have announced maintenance or production halts, contributing to continued disruptions. As a result, lithium prices are expected to remain on an upward trajectory.