UBS released a research report stating that, based on a higher lithium price forecast, it has raised the 2026 profit estimates for the covered Chinese lithium stocks by 10% to 40% and increased the target prices for several shares. The firm reiterated its "Buy" ratings for the A/H shares of Ganfeng Lithium Group Co.,Ltd. (002460.SZ) (01772) and the A shares of Tianqi Lithium Corporation (002466.SZ).

UBS's global commodities team has raised its global lithium price forecast, citing expectations of strong demand for Battery Energy Storage Systems (BESS), increased electric vehicle demand driven by higher energy prices due to Middle East conflicts, and accelerating demand for electric trucks in China. The report forecasts that global lithium demand in 2026 will increase by 16% year-over-year to 1.97 million tonnes of lithium carbonate equivalent (LCE). Within this, demand for electric vehicle batteries is projected to account for 53%, growing 12% year-over-year, while demand for BESS batteries is expected to account for 17%, surging 60% year-over-year. The bank has slightly raised its 2024 global lithium supply forecast by 1% and anticipates that global risk-weighted supply will increase by approximately 13% year-over-year to 1.91 million tonnes LCE (including recycling), resulting in a deficit of 65,000 tonnes LCE.

The bank has raised its 2026 forecast for the average Chinese lithium carbonate spot price (including value-added tax) by 18% to CNY 200,000 per tonne. It expects spot prices could reach CNY 250,000 per tonne between May and June.