The world's leading lithium resource company, with high-quality lithium ore and lithium salt lake resources, strategically lays out lithium resources in China, Australia, and Chile. It is one of the few companies in the world that are also involved in high-quality lithium mines and salt lake brine mines. It has 2 lithium mines and 2 lithium salt lakes. The total amount of resources exceeds 55 million tons of LCE and 14 million tons of equity resources. Among them, the Greenbush mine, which the company holds 26% of, is the world's lowest cost, highest grade, and largest spodumene mine, with a total mineral resource volume of about 16 million tons of LCE.

Atacama Salt Lake, which the company holds 22% of, is the project with the highest production of lithium-producing salt lakes in the world, accounting for 42% of the world's total supply of salt lakes in 2023.

The scale of lithium salt production capacity is leading, and multi-phase projects are progressing steadily

The company has 5 lithium compound production bases at home and abroad, leading in scale and advanced technology. Among them, the Sichuan Shehong production base is the company's earliest production base, with an annual production capacity of about 0.024 million tons of comprehensive lithium chemical products; the Jiangsu Zhangjiagang production base is currently the only fully automated battery-grade lithium carbonate production plant in the world, which currently has an annual production capacity of 0.02 million tons; the battery grade lithium carbonate project at the Anju Plant in Suining, Sichuan is currently in the process of climbing capacity.

The industry has cleared up, and the company's resource advantage is obvious

After the rapid decline in the price of lithium carbonate, the return on lithium projects fell sharply, and industry production expansion plans may slow down somewhat. Currently, due to loss pressure, domestic high-cost mica mines and some Australian mines have reduced production, and the industry is clearly showing clear signals. As a lithium company with high-quality resources and a high self-sufficiency rate in the industry, the company's resource advantage is even more obvious.

Investment advice

We expect the company's net profit to be -4.862/2.629/4.471 billion yuan in 2024-2026, respectively, and the corresponding PE in 2025-2026 will be 24 and 14 times, respectively, covered for the first time, and given a “buy” rating.

Risk Alerts

New production capacity falls short of expectations; downstream demand falls short of expectations; the emergence of new technologies; and uncontrollable global geopolitical risks.