This paper presents recurrence spectra of highly excited lithium atoms with M = 1 state in parallel electric and magnetic fields at a fixed scaled energy ε = -0.03. Short-ranged potentials including ionic core potential and centrifugal barrier are taken into account. Their effects on the states and photo-absorption spectrum are analysed in detail. This demonstrates that the geometric features of classical orbits are of special importance for modulations of the spectral patte. Thus the weak polarization as well as the reduction of correlation of electrons induced by short-ranged potentials give rise to the recurrence spectra of lithium M = 1 atoms more compact than that of the M = 0 one, which is in good agreement with the experimental prediction.