February 26th News On February 24th, the second-phase construction of Sichuan Tianhua Times New Energy Lithium Battery Materials Project officially commenced. Upon completion, the project will establish an annual production capacity of 60,000 tons of battery-grade lithium hydroxide (flexibly convertible to 53,000 tons of battery-grade lithium carbonate) and an additional 60,000 tons of battery-grade lithium carbonate annually. **Chempricehub Analysis** **Lithium Hydroxide, Bull-Bear Score: -1** The project adds 60,000 tons of annual lithium hydroxide production capacity, significantly boosting market supply. The increase in supply will tilt the supply-demand balance toward a looser state, exerting downward pressure on spot prices. Considering the potential slowdown in the growth rate of lithium battery material demand, this capacity expansion is expected to exacerbate market oversupply risks, exerting a generally bearish impact on prices. **Lithium Carbonate, Bull-Bear Score: -1** The project directly adds 60,000 tons of annual lithium carbonate production capacity, while the lithium hydroxide portion can be flexibly converted into 53,000 tons of lithium carbonate. These dual factors drive a substantial increase in overall supply. This will reinforce the ample supply situation in the market, putting downward pressure on spot prices. Given the ongoing trend of capacity expansion in the lithium carbonate industry, this development poses a generally bearish impact on prices, necessitating attention to demand-side absorption capacity.