Ganfeng Lithium's stock plummeted 5.03% intraday, following a period of significant gains.

The decline appears to be driven by profit-taking activity after the stock posted consecutive gains in recent sessions. The prior rally was fueled by strengthening expectations of lithium carbonate supply contraction, as mining rectifications in Yichun, Jiangxi Province, entered a substantive phase, reinforcing short-term supply disruption expectations.

Analysts project lithium prices will trend upward in the second half of the year, with demand elasticity becoming evident once prices exceed a certain threshold. Additionally, Citigroup's reduced short position in Ganfeng Lithium H-shares indicated a partial easing of bearish sentiment prior to this adjustment.