Ganfeng Lithium to build 50,000 tpy lithium project in Fengcheng city

China's Ganfeng Lithium will set up 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, it said on Wednesday June 9.

Ganfeng signed an investment contract with the local government in Fengcheng on June 8 to build the lithium project.

The investment will provide for building related infrastructure, plant, auxiliary facilities, staff quarters and safety production equipment, the company said in its announcement.

The first phase of the project will target annual output of 25,000 tonnes of lithium hydroxide in its 3,000 square meter site, located in Fengcheng’s high tech zone.

Ganfeng did not disclose the start or completion date for construction of the project.

Ganfeng said that the new project will further expand the production scale and market share of company’s lithium products, ensure long-term stable development, and improve its core competitiveness, in line with company’s development strategy.

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 was at 92,500-97,500 yuan ($14,446-15,227) per tonne on June 3, up by 4.97% from 88,000-93,000 yuan per tonne previously and compared with 41,000-46,000 yuan per tonne at the start of the year.

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