Lithium, page-5

Hi LiON
Shut down by the government, I can't help to think the company was failing environmental laws to be shut down.
I couldn't remember where else I read this story, but a different article, so I consulted AI.

Here’s a detailed summary of the Zangge Lithium closure and the events surrounding it:

Zangge Lithium Production Halt: What Happened?

Zangge Mining, a major Chinese lithium producer, was ordered to halt lithium production in Qinghai province due to unspecified compliance issues. The suspension was issued by local officials, and no timeline has been provided for resuming operations.

⚠️ Key Details:

• The halt affects operations expected to produce 11,000 metric tons of lithium carbonate in 2025.
• The move triggered a surge in lithium prices and a rally in lithium-related stocks globally.
• Zangge is majority-owned by Zijin Mining, which recently acquired a controlling stake.

Canadian Government Intervention

In a separate but related development, the Canadian government issued a divestment order requiring Zangge Mining Investment (Chengdu) Co. Ltd. to terminate its investment agreement with Ultra Lithium, a Canadian firm.

Background:

• The order was part of a broader national security review targeting foreign investments in Canadian critical minerals.
• Ultra Lithium and Zangge agreed to terminate their partnership for the Laguna Verde lithium project in Argentina.

️ Impact on Projects

Despite the production halt, Zangge had recently received approval for a ¥4.5 billion lithium carbonate project at Mamicuo Salt Lake in Tibet, aiming to produce 50,000 mt/year of battery-grade lithium carbonate. This project uses advanced adsorption and membrane-based extraction technologies.

Market Reaction

• Albemarle Corp and other lithium producers saw stock surges due to fears of supply disruption.
• Lithium futures hit a three-month high, reflecting short-term volatility.

Well lets hope other lithium stocks come back from the floor, on a sustained basis.