Ganfeng Lithium Chairman Foresees Long-Term Uptrend in China’s Lithium Industry

Ganfeng Lithium Chairman Foresees Long-Term Uptrend in China's Lithium Industry

Key Points:

  • Li Liangbin believes that lithium demand will continue to grow due to the global energy transition despite recent price fluctuations.
  • China has implemented measures to stabilize lithium prices, including futures trading platforms and long-term contracts.
  • Ganfeng Lithium maintains significant investments in overseas resources but faces challenges such as geopolitical risks.
  • The company’s subsidiary in Mexico had to delay its mining operations indefinitely after the local government canceled concessions.

The chairman of Ganfeng Lithium, a prominent Chinese supplier of lithium, expressed optimism about the lithium industry’s future, emphasizing the importance of stabilizing prices for the battery metal. Li Liangbin, Chairman of Ganfeng Lithium, highlighted the growing demand for lithium from various sectors, including power batteries and energy storage, driven by the global energy transition.

Despite recent price fluctuations and a decline in lithium prices due to increased supplies and slowing demand, Li believes that the long-term trajectory for lithium remains positive. He emphasized that while some fluctuations are inevitable, a stable price range between 80,000 and 150,000 yuan per ton would benefit upstream and downstream companies in the lithium industry chain, ensuring profitability for all stakeholders.

The current spot lithium carbonate prices in China, hovering around 100,000 yuan per ton, represent a significant decrease from their peak in November 2022. This decline has impacted miners’ profits and raised concerns about the sustainability of global lithium output.

Li Liangbin highlighted the measures China and Chinese companies took to stabilize lithium prices, including launching a lithium carbonate futures trading platform and establishing long-term contracts to ensure a steady supply and stable prices. Despite geopolitical challenges and investment risks, Ganfeng Lithium remains committed to its overseas investments, with significant holdings in resource-rich countries like Australia and Argentina.

However, Ganfeng Lithium’s subsidiary in Mexico faced setbacks when the local government canceled nine of its concessions, leading to the indefinite postponement of its mining operations. This incident underscores lithium companies’ challenges when operating in various geopolitical environments.

TechGolly editorial team led by Al Mahmud Al Mamun. He worked as an Editor-in-Chief at a world-leading professional research Magazine. Rasel Hossain and Enamul Kabir are supporting as Managing Editor. Our team is intercorporate with technologists, researchers, and technology writers. We have substantial knowledge and background in Information Technology (IT), Artificial Intelligence (AI), and Embedded Technology.

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