Citi: CATL's Yichun lithium mine may be applying for contract renewal, expected to put pressure on lithium prices, maintains "Outperform" rating

Citi released a research report stating that, according to channel surveys, CATL (03750) may have submitted materials to the Natural Resources Bureau regarding the Yichun lithium mine in Jiangxi, marking an important step in applying for a renewal. The firm believes that the company may seek "comprehensive utilization" approval by reporting very low lithium grades, which would be a shorter process compared to a complete lithium mining license. The firm expects lithium prices to face downward pressure, predicting that lithium carbonate prices will quickly fall below RMB 70,000 per ton, reflecting a resurgence of supply surplus in the market. The firm maintains a rating of outperform for CATL's H shares