Mineral Resources Ltd (MIN.AU) saw its stock plummet by 5.86% during Wednesday's trading session, as investors reacted to Citi's downgrade of Australian lithium miners. The sharp decline comes amid growing concerns over potential US reciprocal tariffs, which are expected to pose significant headwinds for lithium demand.

Citi analysts have cut price targets for several Australian lithium miners, including Mineral Resources. The investment bank reduced its price target for MIN.AU to A$20, citing expectations that lithium prices are likely to trade below long-run incentive prices in the near-to-medium term. This pessimistic outlook is largely attributed to the lack of meaningful development of a resilient ex-China supply chain and associated demand.

While some lithium miners like Pilbara Minerals and IGO received rating upgrades to "buy" from Citi, Mineral Resources was not among them. The absence of a positive recommendation, coupled with the reduced price target, appears to have fueled the significant sell-off in Mineral Resources shares. Investors are now reassessing the company's prospects in light of the challenging market conditions for lithium producers.