Lithium mining stocks experienced a significant uptick during the afternoon trading session.

As of the latest update, shares of Tianqi Lithium Corporation (ASX: 09696) were up 3.16%, trading at HK$43.68, while Ganfeng Lithium Group Co.,Ltd. (ASX: 01772) saw a gain of 2.36%, reaching HK$56.40.

The rally was supported by a notable surge in the main lithium carbonate futures contract, which climbed over 3% during the afternoon, hitting a high of 161,900 yuan per ton.

Market analysis suggests that after obtaining new preliminary land use approval and site selection documents for the Shixiawo mine, speculation about its potential resumption of operations has increased, which had previously been putting downward pressure on futures prices.

On a fundamental level, the market is underpinned by constrained supply expansion coupled with persistently robust demand.

Further analysis points to strong demand, with downstream production schedules for June continuing to set new historical highs.

Given the industry-wide inventory drawdown observed in May, the strengthening demand in June is expected to accelerate the destocking process.