On July 11, Chinese language battery fabrics large Ganfeng Lithium introduced that its board of administrators agreed that Ganfeng World, a wholly-owned subsidiary, would gain Argentina-focused Lithea Inc. for as much as $962 million.
Privately-owned Lithea owns rights to 2 lithium salt lakes in Argentina’s mineral-rich Salta province. Ganfeng Lithium mentioned that the purchase is principally to additional enhance the corporate’s useful resource self-sufficiency price and to reinforce the corporate’s core competitiveness.
Many of the international lithium assets come from salt lakes and tough rock lithium mines, amongst which mature salt lakes are principally disbursed in South The united states and China, whilst maximum lithium mines are concentrated in Western Australia. Suffering from the pandemic and the low lithium worth in 2020, lithium useful resource enterprises lowered capital expenditures in 2020 and bogged down enlargement, leading to a restricted new provide of lithium assets in 2021. Then again, with a surge in downstream call for, the cost of lithium battery uncooked fabrics has additionally risen.
In keeping with the 2021 annual record of Ganfeng Lithium, right through the reporting duration, the corporate completed working source of revenue of eleven.162 billion yuan ($1.66 billion), a year-on-year build up of 102.07%. The web benefit because of shareholders used to be 5.228 billion yuan, a year-on-year build up of 410.26%.
Within the first quarter of this 12 months, lithium mine assets nonetheless performed a good function within the general earnings of Ganfeng Lithium. The company’s quarterly record confirmed that working source of revenue right through the duration used to be 5.365 billion yuan, a year-on-year build up of 233.91%, whilst the web benefit used to be 3.525 billion yuan, a year-on-year build up of 640.41%.
In the past, Ganfeng Lithium has got keep watch over of plenty of top of the range lithium assets in Australia, Argentina, Eire and Mexico, in addition to Qinghai and Jiangxi in China. On the identical time, the corporate has steadily expanded its trade scope from lithium useful resource building to lithium salt deep processing, steel lithium smelting, lithium battery production and recycling.
On the finish of June this 12 months, Ganfeng Lithium and SVOLT, an influence battery producer, signed a strategic cooperation framework settlement to hold out in-depth collaboration involving lithium assets, lithium salt provide and gross sales, battery recycling and business park building.