A research report from CITIC Construction Investment Securities indicates that lithium mica mines in Jiangxi Province might suspend operations owing to license renewal issues. Additionally, tighter regulations on tailings disposal have further heightened supply concerns. During the Spring Festival, some lithium salt plants underwent maintenance, which has currently led to a lack of supply flexibility. The annual incremental supply is expected to struggle in mitigating the tight supply situation in the first half of the year. On the demand front, export tax rebates have spurred a surge in exports. Consequently, the typically slow consumption season has not seen a slump in demand, making it challenging to build up inventories. This scenario sets the stage for a potential supply crunch in the second quarter. Domestically, carbonate lithium inventories have decreased by 783 tons on a weekly basis, with both upstream and downstream inventories remaining at low levels. This has prompted restocking activities as prices decline. Overall, concerns regarding a second-quarter lithium supply shortage have intensified.