Lithium battery concept gains strength, Haike New Source hits a 20% daily limit, and Huasheng Lithium Battery and others surge significantly.

The lithium battery sector showed active trading on the 26th, and as of the time of writing, Haike Xinyuan hit a 20% limit up, while Huasheng Lithium Battery, Zhongyi Technology, and others rose over 10%. Rongjie Co., Shida Shenghua, and Tianji Co. all reached the limit up.

On the news front, Zimbabwe’s lithium export ban has lasted nearly a month, with no announcements of a lift, and the duration may exceed previous market expectations. Market participants estimate that the impact of Zimbabwe’s export policy adjustment will last about a month.

According to media reports, a journalist learned on March 24 from a Chinese company involved in lithium resources in Zimbabwe that its local mines and lithium salt enterprises are still operating normally, but the export of lithium concentrates remains suspended, and no further details have been provided to accompany the local export ban. As for when exports can resume, all parties are still in active communication. The company currently still holds inventory.

Organizations indicate that Zimbabwe is one of China’s important sources of lithium ore imports. This export ban on Zimbabwean lithium aligns with its value retention strategy, but the current policy abruptly switches to banning all lithium ore exports while only allowing lithium sulfate exports, which does not match the local production situation. It is expected that this export ban will not last long; once resource losses and illegal smuggling issues are addressed and companies with mining rights and processing plants complete the new process approvals, normal lithium ore exports will resume. Against a backdrop of strong demand and low inventory, supply disturbances will be amplified. Currently, lithium carbonate prices are facing some selling pressure near previous highs, and if the ban extends beyond expectations or other supply disturbances occur, prices may break through 200,000 yuan/ton.

CITIC Construction Investment Securities recently pointed out that according to SMM, domestic lithium carbonate inventory continues to decrease, albeit at a slightly slower pace, dropping by 414 tons this week to just under 99,000 tons. Among these, smelter inventory fell by 1,184 tons to 16,000 tons, reaching the lowest level in nearly three years. Downstream inventory decreased by 1,890 tons to 46,000 tons, with estimated available inventory days falling below 10 days. Inventory in other sectors dropped by 1,120 tons to 37,000 tons, also at a relatively low level. On the supply side, lithium carbonate production increased by 768 tons weekly, but considering the disruption from Zimbabwe’s export halt and the port’s ore stock levels, future supply elasticity is expected to be limited. On the demand side, consumption continues to recover, with strong ongoing demand from energy storage and heavy trucks, and power battery consumption gradually entering the peak season. Coupled with the Middle East war factors, overseas energy pressures are becoming prominent, and household storage demand in Europe is rising. It is expected that in the coming quarter, low inventory will remain the core contradiction, making lithium prices likely to rise and difficult to fall.