Morgan Stanley on Lithium 👇
Lithium demand is beating expectations, driven by a surge in Energy Storage Systems (ESS).
ESS production is up ~70% YoY and MS expects another ~50% growth in 2026, tightening the supply–demand balance.
China lithium carbonate prices have already rebounded to ~RMB 100k/t, triggering restarts of idled capacity.
But supply risks remain: multiple lepidolite mines in Yichun could face shutdowns in 2026, limiting upside supply.
Bottom line:
🔹 EVs matter — but ESS is the real swing factor
🔹 Lithium prices likely have more upside than the market expects
🔹 MS upgrades key names like Ganfeng and Tianqi on improved pricing outlook
#Lithium is quietly moving from “oversupply fear” to structural demand story.
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