Ganfeng Lithium

Ganfeng Lithium Co., Ltd. is a company that produces lithium, lithium products, other metals, and batteries in mainland China and globally. It was founded by Li Liangbin in 2000 and is headquartered in Xinyu, Jiangxi.[1][2] It is the largest lithium salt producer in China and the third largest in the world,[3] as well as the second largest lithium processor in the world (after the Chilean Sociedad Química y Minera).[2] It is traded on both the Shenzhen Stock Exchange (SZSE: 002460) and the Hong Kong Stock Exchange (SEHK: 1772)[4] and has a market capitalization of US$26 billion.[2]

Ganfeng Lithium Co., Ltd.
Native name
赣锋锂业股份有限公司
Typepublicly traded company
SZSE: 002460
SEHK: 1772
IndustryMining
Founded2000 (2000)
HeadquartersLongteng Road, Economic Development Zone, Xinyu, Jiangxi Province, China
Key people
Li Liangbin (李良彬, chair)
Wang Xiaoshen (王晓申, vice-chair and president)
ProductsLithium products and other metals
Number of employees
7,870 (2020)
Websitehttp://www.ganfenglithium.com/
Ganfeng Lithium
Simplified Chinese赣锋锂业
Traditional Chinese贛鋒鋰業

Origins

Ganfeng Lithium was founded in 2000[5][2] by Li Liangbin (李良彬) and Li Huabiao (李华彪) in Xinyu City, Jiangxi.[6] In 2003, the company built a lithium production base.[5] The company's leaders, Li Liangbin and Wang Xiaoshen (王晓申), are both of poor, rural origins.[2]

The company started out in chemical processing, but it has expanded its scope by developing mines internationally.[2] In 2017 it began producing batteries for the growing electric vehicle industry. Wang said Ganfeng's battery production would benefit from an economy of scope: "We are the leading supplier of lithium chemicals which will benefit our battery plant."[7]

Products and activities

Described as a "lithium supermarket", Ganfeng sells a wide variety of lithium and related products, including lithium salts, other metals, and batteries.[8][1][9] Its lithium salt production capacity was estimated at 120,000 tons per year as of 2021.[9] As of 2019, it is the largest pure lithium producer in the world.[10] As of 2022, it is also the largest lithium salt producer in China and the third largest in the world,[3] as well as the second largest lithium processor in the world (after the Chilean Sociedad Química y Minera).[2] In 2020, Ganfeng produced an estimated 24% of the world's lithium hydroxide.[8] It sells products to clients including Tesla, BMW, and LG Chem.[9][11]

Ganfeng invests in lithium projects overseas[2] and says its "strategy is to secure long-term competitive resources".[7] It owns three lithium brine projects in Argentina[4] and was the largest shareholder of Lithium Americas in 2021.[12] In 2014, Ganfeng invested in the Mariana lithium-potassium brine project in Argentina.[5] In 2015, the company invested in the Australian company Reed Industrial Minerals, gaining rights to its Mount Marion spodumene project.[5] In 2021, it acquired a 50% ownership stake in the Goulamina mine, a lithium mine in Mali's Ségou Region.[13][14][15][16] The company also has investments and contracts in China,[15] Ireland,[15] Mexico,[15][2] and the Democratic Republic of the Congo.[15]

This international scope makes Ganfeng vulnerable to geopolitical tension.[2] Its former supplier Joe Lowry said that the company would be "treading a fine line" between international pressures; Ganfeng risks being affected by US government actions targeting Chinese companies or by Chinese government intervention in the electric vehicle industry.[2] Governments in Latin America have also taken steps that may limit Ganfeng's opportunities there; for instance, Mexican president Andrés Manuel López Obrador has worked to nationalize the country's lithium.[8][17]

Stock market listings

The company is dual-listed on the Hong Kong Stock Exchange and the Shenzhen Stock Exchange.[2] As of August 2022, it has a market capitalization of US$26 billion.[2]

On 10 August 2010, the company had an IPO on the Shenzhen Stock Exchange. It issued 25 million new shares at a price of 20.7 RMB each, raising 517.5 million RMB.[18][6]

On 11 October 2018, it had an IPO on the main board of the Hong Kong Stock Exchange at a list price range of 16.50–26.50 HKD. The company issued 200,185,800 H shares, raising 3.171 billion HKD, which it used to expand its lithium-related activities. China Structural Reform Fund, LG, Samsung, Dongfeng Motor Corporation, FAW Group, and GoldenSand Capital were the six cornerstone investors.[19][20][21][22]

In July 2022, Ganfeng announced that it was being investigated by the China Securities Regulatory Commission in a possible insider trading case.[9] The company's stock fell 7% on the Shenzhen stock exchange after the announcement.[23]

See also

References
  1. "贛鋒鋰業股份有限公司業務資料". Archived from the original on 2021-03-05. Retrieved 2022-05-04.
  2. "China's lithium champion Ganfeng mints money but walks a fine line". Financial Times. 19 August 2022. Retrieved 13 October 2022.
  3. "Shares of lithium-salt provider surge as EV demand drives tenfold profit jump". South China Morning Post. 27 April 2022. Retrieved 13 October 2022.
  4. "China's lithium giant buys Argentina mine to boost battery resource". South China Morning Post. 12 July 2022. Retrieved 13 October 2022.
  5. "贛鋒鋰業股份有限公司歷史". Archived from the original on 2022-06-23. Retrieved 2022-05-04.
  6. "Ganfeng Lithium Co., Ltd". p. 116. Retrieved 13 October 2022.
  7. "China's Ganfeng prepares for electric car buying rush". Financial Times. 6 July 2017. Retrieved 15 October 2022.
  8. "China's Ganfeng Lithium stakes out overseas claims in hot market". Nikkei Asia. Retrieved 15 October 2022.
  9. "China probes Tesla supplier Ganfeng Lithium for suspected insider trading". South China Morning Post. 4 July 2022. Retrieved 13 October 2022.
  10. "Electric cars: China powers the battery supply chain". Financial Times. 22 May 2019. Retrieved 15 October 2022.
  11. "Shares in China's lithium producer Ganfeng surge 10% on Tesla deal". Financial Times. Retrieved 15 October 2022.
  12. Penn, Ivan; Lipton, Eric; Angotti-Jones, Gabriella (6 May 2021). "The Lithium Gold Rush: Inside the Race to Power Electric Vehicles". The New York Times. Retrieved 13 October 2022.
  13. "China's Ganfeng Lithium buys lithium mines in Argentina". Financial Times. 11 July 2022. Retrieved 13 October 2022.
  14. "China's biggest lithium group seals deal for UK-listed Bacanora". Financial Times. 25 August 2021. Retrieved 15 October 2022.
  15. "China's Ganfeng to pay $130 million for stake in Mali lithium mine". Reuters. 14 June 2021. Retrieved 13 October 2022.
  16. "Firefinch and China's Ganfeng take FID for Mali lithium project". Mining Technology. 4 January 2022. Retrieved 13 October 2022.
  17. "Mexico nationalises lithium in populist president's push to extend state control". Financial Times. 20 April 2022. Retrieved 15 October 2022.
  18. "赣锋锂业股份有限公司招股公告". Shenzhen Stock Exchange. 2010-07-27. Archived from the original on 2022-05-05.
  19. "赣锋锂业香港IPO拟集资33-53亿元". Jiangxi Daily. 2018-10-10. Archived from the original on 2022-07-02.
  20. "赣锋锂业股份有限公司招股資料" (PDF). Archived from the original (PDF) on 2022-05-04. Retrieved 2022-05-04.
  21. "赣锋锂业股份有限公司招股公告" (PDF). Archived from the original (PDF) on 2022-05-05. Retrieved 2022-05-04.
  22. "China's Ganfeng Lithium Prices IPO at bottom of range raising $422m". www.ft.com. Retrieved 15 October 2022.
  23. "Chinese Tesla lithium supplier probed for insider trading". Financial Times. 4 July 2022. Retrieved 15 October 2022.
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