CITIC Securities: Inventory Continues to Clear, Demand Gradually Rising, Lithium Prices Prone to Rise but Resistant to Fall

How strong is the support of low inventory days for lithium prices?

[CITIC Construction Investment: Inventory reduction supports demand growth, making lithium prices more likely to rise than fall] Caixin, March 23 — CITIC Construction Investment states that rising global energy costs are fueling expectations of energy structure transformation. High oil prices strengthen the economics of electric vehicles, and the penetration rate of end-use electric vehicles is expected to continue increasing. Some overseas regions are facing energy security issues, shifting the balance from traditional energy to wind, solar, and storage, which stimulates further growth in energy storage demand. According to SMM, lithium carbonate inventories remain stable at 99,000 tons this week, with total inventory days below 20 days — the lowest in nearly three years. Inventory at lithium salt plants is 17,000 tons, downstream inventories are 46,000 tons, and other segments hold 36,000 tons. During the traditional peak season for consumption, demand continues to grow month-on-month, and the core issue of low inventory remains, providing strong fundamental support for lithium prices.