Ganfeng Lithium receives approval to issue new shares amid surging lithium demand

China’s Ganfeng Lithium has been authorized by the Chinese Securities Regulatory Commission to issue around 48 million new shares overseas, the company said in a filing on Friday June 11.

The news comes at a time of growing demand for lithium in China and overseas amid a shift to a greener economy.

Lithium is a key ingredient in batteries used to power electric vehicles (EV).

The company is listed on the Shenzhen Stock Exchange and the Hong Kong Stock Exchange.

Earlier this week, the company announced a joint venture to invest in and construct a lithium project with an annual output 50,000 tonnes of lithium salts in Fengcheng city, Jiangxi province, in response to surging lithium demand in China.

Demand for lithium hydroxide has continued to increase, driven by the development of the high-nickel ternary battery sector. China’s lithium hydroxide prices have risen rapidly since the start of 2021 amid decent buying interest and supply tightness.

Fastmarkets’ weekly assessment for the lithium hydroxide monohydrate, 56.5% LiOH.H2O min, battery grade, spot price range, exw domestic China held at 92,500-97,500 yuan ($14,467-15,249) per tonne on June 10, unchanged from a week a go but up from 41,000-46,000 yuan per tonne on December 31.

Spot business has been active in recent weeks in China with consumers attempting to secure units for June delivery to support production that is broadly operating at full rates amid robust demand for nickel-rich nickel-cobalt-manganese (NCM) lithium-ion batteries, which typically feed on lithium hydroxide.

What to read next
The March 2024 monthly averages were published today based on the index values of March 1, 8, 15 and 22.
Recent developments in China’s pulp and paper industry, notably the divestment of the Anhui Huatai pulp mill, prompted a closer examination of the dynamics of swing pulp lines, particularly the delicate balance between dissolving wood pulp and paper grade wood pulp. The Anhui Huatai pulp mill, which suspended production in the first half of 2023, […]
The result of Albemarle’s spodumene concentrate digital bidding event on Tuesday March 26 was 9,372 yuan ($1,230) per tonne on an ex-works China basis, according to sources close to the matter
China’s manufacturing sector is overtaking its construction sector in driving the country’s demand for steel, in a shift that is expected to benefit flat steel products more than long steel ones, an industry expert said at an industry conference on Friday March 22
China’s graphite exports continued to fall in the first two months of 2024 after the implementation of the export controls on certain graphite-related products on December 1, 2023
Producing battery-grade manganese sulfate in China is “logical” even for non-Chinese companies, due to the country’s strong demand and cost competitiveness, according to the chief executive officer of emerging Australia-headquartered producer Firebird Metals