Sentiment for lithium prices and lithium stocks turned bullish in late 2025 as global demand surged, suggesting that a market surplus could tighten into a deficit sooner than previously expected.

Prices for the battery metal, which had soared through late 2022, faced volatility, but rebounded in the second half of the year on robust demand growth, inventory drawdowns and regulatory tightening.

Notably, Contemporary Amperex Technology (SZSE:300750,HKEX:3750) halted operations at a major Chinese lithium mine, while Beijing introduced measures to prevent sales at unsustainably low prices.

The growing recognition of lithium as a critical mineral, alongside Western concerns over China’s dominance in supply chains, has strengthened the…