BRIEF: Ganfeng bids for new Chilean lithium project

Ganfeng Lithium Group Co. Ltd. (1772.HK; 002460.SZ) is among the miners bidding to co-develop a new lithium project in Chile’s Maricunga salt flat, Caixin reported, citing unnamed sources familiar with the matter. A list of first-round candidates for the project, being developed by Chile’s state-owned Codelco, is expected soon, according to the report.

The area slated for development has estimated reserves of 8 million tons of lithium carbonate equivalent, with an average lithium concentrate of more than 1,100 milligrams per liter. China Minmetals Corp., another major Chinese miner, is also one of the bidders, Caixin said.

Chile is home to the world’s second-largest lithium mining industry, behind only Australia. The metal is a key component in many of the batteries used in electric vehicles (EVs), as well as for storage of excess power generated by wind and solar farms.

Lithium’s prices soared last year as demand for the metal jumped with growing adoption of EVs and green energy. But they have come back down this year, leading to big revenue and profit declines for major miners. Ganfeng was a case in point, reporting its revenue tumbled by nearly half year-on-year to 9.5 billion yuan ($1.3 billion) in the first half of this year. It reported a 1.1 billion yuan loss for the period, reversing a 5.9 billion yuan profit a year earlier.

By Doug Young

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