GANFENGLITHIUM's stock surged 5.03% during intraday trading on Wednesday, continuing its upward momentum in the lithium sector.

The sharp rise follows the company's positive Q1 earnings forecast, projecting a dramatic turnaround from a loss of approximately RMB 356 million in the same period last year to an attributable net profit of RMB 1.6 billion to RMB 2.1 billion. This represents year-over-year growth of roughly 550% to 690%, driven by a sustained rally in lithium carbonate prices which have more than doubled from their trough.

Supply constraints are also supporting the bullish sentiment, with Zimbabwe's ban on lithium ore exports and production cuts in Australia expected to impact global lithium supply. Additionally, four key lithium mica mines in China's Jiangxi province are expected to suspend operations for license renewals, while IGO has revised down its production guidance for the Greenbushes lithium mine. These supply disruptions, coupled with strong demand from new energy vehicles and energy storage systems, are creating a favorable environment for lithium producers.