Ganfeng Lithium: The supply and demand of lithium salt products remain tightly balanced, and the demand side is still cautiously optimistic.

Golden Ten Data reported on June 30 that Ganfeng Lithium stated at its second extraordinary general meeting of shareholders in 2026 that although lithium carbonate prices have shown significant volatility recently, there have been no notable changes in the industry's fundamentals—the supply and demand for lithium salt products remain in a tight balance. The price decline in June was mainly due to the offseason in the spot market, rising concerns over inventory (with market worries about hidden inventories being amplified), as well as continuous weakness in futures prices—all of which combined to drive the decrease. We believe that short-term fluctuations in lithium carbonate prices have actually laid a good foundation for downstream customers' procurement and demand release in the upcoming peak season. Looking ahead to the second half of this year and next year, there is still considerable uncertainty about the release of lithium supply. The core reason is that lithium prices have remained depressed over the past 2-3 years, leading to a lack of large-scale capital expenditure in the industry. Most projects that can be brought into production now are those that began construction earlier, and overall industry capacity expansion remains measured. On the demand side, we remain cautiously optimistic: whether in energy storage or power applications, geopolitical factors combined with high energy prices have significantly increased the importance of energy independence and security, providing a positive stimulus for the new energy industry and thereby offering medium- to long-term support for lithium demand.