Recently, Shengxin Lithium Energy Group Co., Ltd (hereinafter referred to as "Shengxin Lithium Energy") disclosed an announcement that its application for a private placement of shares to specific investors has been accepted for review by the Shenzhen Stock Exchange. According to the prospectus, the company plans to raise a total of no more than 5.3 billion yuan through this private placement. After deducting issuance expenses, the funds will be used for the Mulong lithium mine mining, beneficiation, and tailings project, as well as to supplement working capital.

Data shows that the Mulong lithium mine possesses high-quality lithium resources and has promising development prospects. It is a significant achievement of the Ministry of Natural Resources' new round of strategic mineral prospecting breakthrough actions. The mine has Li2O resources of 989,600 tonnes with an average grade of 1.62%. It is designed to process 3 million tonnes of run-of-mine ore annually. Once it reaches full production, it can produce high-quality spodumene concentrate, equivalent to approximately 75,000 tonnes of lithium carbonate per year. This project will help Shengxin Lithium Energy improve its lithium resource self-sufficiency rate.

Since 2026, as lithium prices have gradually recovered, the pace of capacity release from Shengxin Lithium Energy and other lithium mining companies has accelerated. According to information disclosed by Jiangxi Ganfeng Lithium Co., Ltd (hereinafter referred to as "Ganfeng Lithium"), its Goulamina spodumene mine project in Mali (Phase I) produced a total of 161,400 tonnes of lithium concentrate from January to April this year. The resource supply capacity continues to strengthen, and the construction of Phase II of the project is also progressing. With the gradual release of capacity, the Goulamina project will become a key source of low-cost, high-quality supply within the company's lithium resource system.

The subsidiary of Tianqi Lithium Corporation, Talison Lithium, holds the mining rights for the Greenbushes spodumene mine, the world's largest producing spodumene mine. Information previously disclosed shows that the Greenbushes Chemical Grade Lithium Concentrate Plant No. 3 produced its first batch of standard-compliant chemical-grade lithium concentrate products on January 30 this year, and it is planned to complete its capacity ramp-up within 2026.

For Sichuan New Energy Power Co., Ltd, the Lijiagou 1.05 million tonne/year lithium mine mining and beneficiation project reached full production in the second half of 2025. In the first quarter of this year, Sichuan New Energy Power produced and sold 36,200 tonnes of lithium concentrate, achieving a lithium carbonate output of 3,582.59 tonnes and sales of 2,250 tonnes. Furthermore, Sichuan New Energy Power has initiated preliminary work related to increasing the reserves of the Lijiagou mining area.

From an industry trend perspective, the supply and demand for lithium resources are expected to grow simultaneously in the future. According to a research report by Huaxin Securities, major lithium mining companies are, on one hand, releasing capacity from existing projects, and on the other hand, stepping up efforts in saline lake resources and cutting-edge lithium extraction technologies. Global lithium supply will continue to increase in the future, but the growth rate will gradually decline. On the demand side, the proportion and growth rate of energy storage industry demand for lithium batteries have both increased significantly. It is expected that within the next three years, the lithium mining industry will transition from a tight supply-demand balance to a supply deficit, and the lithium price center is expected to continue its upward trend.

Yuan Shuai, Deputy Secretary-General of the Zhongguancun Internet of Things Industry Alliance, stated: "Lithium mining projects that companies laid out during the high-price period of the past two years will gradually enter a capacity release phase from the second half of 2026 to 2027. Incremental supply from overseas saline lakes and domestic hard rock lithium mines will come to market sequentially, enhancing supply-side flexibility. However, the commissioning progress of these projects is often affected by multiple factors such as environmental approvals and construction cycles, creating some uncertainty in the actual release schedule. Meanwhile, support from the lithium industry's demand side remains very strong. The tug-of-war between supply and demand will keep subsequent lithium prices fluctuating within a reasonable range, and the overall trend will be towards a healthier development of the industrial chain."

Fu Yifu, a special researcher at Suzhou Bank, commented: "From a long-term perspective, the continued increase in the penetration rate of energy storage and new energy vehicles has built a solid foundation for lithium resource demand. Lithium prices will seek a new balance between cost support and supply release. Regarding the industry ecosystem, profits will continue to tilt towards the upstream resource end. Companies with high-quality mines and low-cost, integrated capabilities will have a deeper 'moat'. At the same time, an industry consensus is gradually forming: only by maintaining a reasonable and stable price level can the commercial sustainability of all links be taken into account, avoiding excessive speculation that harms long-term healthy development. Overall, the growth logic for the lithium industry remains unchanged, and its medium-to-long-term development prospects are worth looking forward to."