According to CITIC Securities, citing an announcement from Zangge Mining, Zangge Lithium, a subsidiary of Zangge Mining, has been instructed to cease operations for rectification due to unauthorized mining of lithium resources. CITIC Securities' analysis highlights this incident as indicative of a strengthening scrutiny over mining rights compliance within the domestic mining industry. With multiple local governments maintaining a stringent stance against mining violations, the risk of non-compliance could potentially escalate, leading to the closure of lithium extraction enterprises from salt lakes and lithium mica in regions such as Qinghai and Yichun. This scenario could significantly impact the domestic supply of lithium resources. In the long term, with a robust cost support for lithium prices ranging from RMB 60,000 to 70,000 per ton, combined with short-term supply fluctuations and surging demand, it is anticipated that lithium prices will gradually rebound.