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.

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