Projects: GOLD/HALLOYSITE/LITHIUM/COPPER/HEAVY METALS, page-1405

(Bloomberg) -- Ganfeng Lithium Co., thelithium supplier that’s extending an acquisition spree, says there’s a chance that a tightening market for thebattery metal could push prices back toward a record high.

The world’s third-largest producer of lithiumchemicals, used in batteries for electric vehicles to grid-scale energystorage, is positioning to capitalize as the market extends a rebound from amore than two year slump that ended in September.

“The industry is rapidly growing and we have avery upbeat forecast on lithium consumption,” Vice Chairman Wang Xiaoshen saidin an interview. “I can’t rule out the possibility for lithium prices to bounceback to the 2018 level.”

Lithium prices surged from 2015 to mid-2018 asrising demand from electric automakers outpaced available supply from a smallnetwork of mining and refining companies. A subsequent rush to add new sourcesof raw materials, chiefly from Australian mines and South American brineoperations, then sent the metal tumbling.

Moves by the industry to halt development ofnew projects amid that sell-off has meant a near-term tightening of the lithiummarket, and Wang said it’ll take time for the revived expansions and newoperations to deliver new supply. That could see a deficit late this year or in2022, he said.

At the same time, demand for bothbattery-powered vehicles and storage systems for renewable energy is buildingquickly. “We will step up efforts on the exploration of lithium resources tomeet the market needs,” Wang said.

Jiangxi-based Ganfeng, which raised $628million in a share placement this month, has made new investments recently inprojects in Mexico and Mali, adding to stakes in mining and brine operations inlocations including Argentina, Australia and China.

Shares in Hong Kong climbed more than 3% andare up 25% this year.

Read more: Ganfeng Tops 2021 Spending Spreewith Mexico Acquisition: BNEF

Accelerating sales of electric cars andgovernment stimulus programs aimed at encouraging adoption of greener energyare adding to lithium’s positive outlook. Demand for lithium-ion batteries isexpected to jump tenfold by 2030, according to BloombergNEF.

“Prices for lithium chemicals will still haveroom to rise by the end of the year, demand for EV batteries and energy storageis still strong,” said Xiaoyi Liu, an analyst at Shanghai Metals Market.

According to Morgan Stanley, high spot pricesin China reflect tight supply, strong demand, and low inventory. Smallerconverters are already running out of raw materials and higher prices arelikely to lead to gradual mining restarts in Australia in the second half, thebank said in a note.

It is perfect time to bring our LI project on now!!!!