AT A GLANCE: Ganfeng Lithium profits surge in Q3 on increasing lithium sales

A summary of Chinese lithium producer Ganfeng Lithium’s financial results for the third quarter of 2020, published on Friday October 30.

In brief

  • The company attributed the surge in profits and revenue in the third quarter to increased lithium sales. It did not release sales volumes for the period.
  • Pilbara Minerals shares held by the company rose in the third quarter, generating a higher pay-back from investment, and together with some government subsidies obtained, also boosted profits.
  • The company’s net profits and revenue in January-September 2020 were largely level year on year due to falling lithium prices, offset by higher sales volumes.
  • The company estimates whole year net profits in 2020 to reach 400-500 million yuan ($59.5-74.5 million), up 11.7-39.6% year on year supported by increasing lithium sales. The company also expects their lithium-ion battery sector to boost whole-year performance.

Q3 2020 results
(Year-on-year % change)

Profit attributable to shareholders
173.99 million yuan, up 421.3% from 33.38 million yuan

Revenue
1.51 billion yuan, up 8.5% from 1.39 billion yuan

January-September 2020 results
(Year-on-year % change)

Profit attributable to shareholders
330 million yuan, up 0.4% from 329.17 million yuan

Revenue
3.89 billion yuan, down 7.5% from 4.21 million yuan

What to read next
Despite the current headwinds, strategic partnerships and continued investment in the right areas, coupled with the underlying strong long-term demand fundamentals, will pave the way for success for lithium producers, according to the participants of the executive panel during the Fastmarkets Lithium Supply and Battery Raw Materials Conference, which took place from June 23-26 in Las Vegas, Nevada.
The US needs well-defined and stable policy around critical minerals, energy transition and trade, while derisking projects and maintaining good relations with other countries to be able to establish sustainable electric vehicle (EV) and energy storage systems (ESS) supply chains in North America, according to industry experts.
The US and Europe must adopt long-term, consistent policies and should learn lessons from China, according to lithium industry experts speaking at Fastmarkets’ Lithium Supply and Battery Raw Materials Conference in Las Vegas, US, over June 22-25.
Producers in Arkansas' Smackover Formation are advancing lithium extraction projects following recent regulatory approvals. Supported by oil and gas expertise and state incentives, the region is positioning itself as a key player in the US lithium supply chain.
The 2025 Fastmarkets Lithium Conference in Las Vegas highlighted critical issues shaping the battery supply chain, including lithium oversupply, funding struggles and the need for midstream investment. Discussions also emphasized the importance of interdependence with China and the challenges faced by recyclers amid policy uncertainty and market headwinds.
Global mining major Rio Tinto has sharpened its focus on lithium, betting not just on traditional hard rock or brine evaporation but on an emerging technology that could reshape the industry - direct lithium extraction (DLE)