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China’s Ganfeng sees lithium supplies tightening

Published date: 20 January 2021
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Major Chinese lithium producer Jiangxi Ganfeng sees availability of its lithium products tightening in January-February because of the 11-17 February lunar new year holiday, as downstream consumers rush to secure supplies ahead of the festive period.
Ganfeng also expects its lithium salt product supplies to remain tight overall in 2021, with European carbon emission regulations and China's subsidy policy likely to continue to boost the global electric vehicle (EV) industry. The pace of electrification in the global automotive industry is accelerating, with various countries continuing to increase promotion of EVs and stimulate consumer demand by providing higher subsidies.
Ganfeng is optimistic about long-term demand from the EV industry, which will gradually drive up prices of lithium products. The firm has a designed capacity of 81,000 t/yr for lithium hydroxide and 40,500 t/yr for lithium carbonate.
Sufficient feedstock supplies

Ganfeng has secured sufficient lithium resources through offtake agreements and share acquisitions. These mainly include the Mount Marion and Pilgangoora mines in Australia, as well as the Avalonia project in Ireland. Its main brine resources include Mariana andCauchari-Olaroz in Argentina and the Sonora project in Mexico.
The firm also has enough spodumene inventories to last half a year, having accrued sufficient raw material reserves in the recent two years.
Ganfeng has been strengthening its investment and development capability in the new energy industry. It signed a five-year agreement in December to purchase lithium spodumene concentrate from Australia-based AVZ Minerals' Manono lithium and tin mine in the Democratic Republic of Congo.
Argus last assessed prices for 99.5pc grade lithium carbonate at 59,000-64,000 yuan/t ($9,130-9,900/t) ex-works on 19 January, up by Yn2,000/t from 14 January. Large-scale producers were fulfilling orders and had suspended offers to spot buyers. Prices for 56.5pc grade lithium hydroxide were assessed at Yn49,000-53,000/t ex-works yesterday, up by Yn1,000/t from 14 January.​