The Zhitong Finance App learned that J.P. Morgan released a research report saying that it believes that the current rise in lithium prices is similar to the previous one, and that the rise is expected to be brief. The bank maintained its “holdings reduction” ratings for Ganfeng Lithium (01772) and Tianqi Lithium (09696). The target prices were lowered to HK$13.5 and HK$16 respectively, which meant that there was 20% to 24% downside.

According to the report, the price of lithium futures on the Guangzhou Futures Exchange rose 6% to 8% to about 0.078 million yuan per ton yesterday (September 11). Market speculation that Ningde Era suspended production at its mines, and lithium stocks also rose 10% to 14%. According to the bank, similar speculation appeared in February of this year. Lithium prices soared by about 30% to 0.12 million yuan per ton within two weeks, but the rise was brief. Due to the lack of basic factors, the industry also began to hedge against high prices.