Daiwa published a research report. It is expected that the global lithium market will focus on removing production capacity and supply this year, predicting that global lithium supply and demand will reach 1,234,000 to 1.265,000 tons this year, up from 970,000 to 975,000 tons last year. The oversupply last year and this year is expected to continue until 2025. This year's supply risk is greater than 150,000 tons, so it is optimistic about lithium companies that are unlikely to be affected by production cuts and have lower costs. Yamato said that it is more optimistic about lithium resources than other battery materials in the industry, and reiterated Ganfeng Lithium's rating of “outperforming the market”. The target price was lowered from HK$60 to HK$29.5. At the same time, Daiwa also reaffirmed Tianqi Lithium's “outperforming the market” rating, and the target price was raised from HK$31 to HK$34. According to the bank, unlike the industry bottom-finding situation from 2019 to 2020, this production cut has not been accompanied by an increase in demand, so there are currently no long-term growth prospects for lithium.