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Morgan Stanley's positive take on lithiumInvestment banks have been bashing lithium for over twelve months and for the most part – They've been right.Morgan Stanley released a surprisingly positive note on lithium overnight. Here are some of the highlights:"We have learned that the Yichun government is requiring local lithium converters to: 1) Initiate self-inspection on environmental protection issues ahead of government inspections; 2)Track the direction of refining slags since late last year; and 3) Temporarily suspend transportation of refining slags across districts pending further classification of these refining slags."For context: Refining slags are waste products generated during the process of refining lithium. They may contain various impurities, including residual lithium compounds, other metals, and potentially hazardous materials."Some local lithium producers in Yichun ... have kept their operations suspended. The need for self-inspection may prolong these suspensions in the near term."Overall, we think the current supply disruptions and concerns will lift near-term market sentiment as lithium output in Yichun accounted for around 20% of China's total lithium production and approximately 13% of global supply in 2023, according to SSM.""On the other hand, if the classification of refining slags is finalised, and no environmental protection-related issues are defined, we believe supply disruption will only be temporary."