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Reopening Bets Spur Market-Leading Rally in China Lithium Stocks

  • Hopes for supply chain recovery boost outlook for the sector
  • Goldman warns of ‘sharp correction’ in prices over two years

China’s lithium stocks are on a tear, buoyed by bets that a relaxation of virus curbs will ease supply chain disruptions and boost demand from electric-vehicle makers.

Shares of major producer Tianqi Lithium Corp. have rallied 66% after hitting a low in late April, outstripping a 6% advance by the benchmark CSI 300 Index during that period. Ganfeng Lithium Co. and Chengxin Lithium Group Co. surged about 30% and 40%, respectively, in onshore trading.