According to the CITIC SEC research report, in the first quarter of 2024, affected by the low operation of lithium prices, some overseas lithium mining companies took the initiative to reduce production, and the supply of lithium mines decreased compared to the previous quarter; the production of lithium extraction from salt lakes in South America increased year-on-year in Q1 24, and SQM raised its production guidance for 2024, coupled with the expansion of multiple projects in Argentina. It is expected that the supply of lithium from salt lakes will continue to grow. Since the second quarter, due to the increase in China's import volume of lithium salt and lithium ore, the domestic production of lithium salt has continued to increase, and the pressure on the supply side has increased. With the demand entering the off-season, the lithium price has fallen below 100,000 yuan/ton. We expect that lithium demand will recover in the third quarter, downstream manufacturers may stock up for the peak season, and the space for lithium price to fall is expected to be limited.