BRIEF: Production begins at Ganfeng Lithium’s Mariana project

Ganfeng Lithium Group Co. Ltd. (1772.HK; 002460.SZ) said on Tuesday it has begun production at its Mariana processing plant in Argentina, one of its several South American projects currently in progress. The plant represents a $790 million investment and can process up to 20,000 metric tons of lithium chloride annually from the nearby Llullaillaco salt flat.

Ganfeng has also built a $190 million solar farm to generate electricity for the project, according to Reuters. A local Ganfeng official said construction will begin later this year on the company’s Pozuelos-Pastos Grandes project, also in Argentina. Its Incahuasi–Arizaro project, also in Argentina, is in the advanced exploration phase, the official said.

Ganfeng is one of the world’s largest producers of lithium, a key component in the batteries that power electric vehicles (EVs). The company and its peers profited in 2023 as lithium prices soared on growing demand from battery makers. But many saw their profits tumble after the lithium bubble burst last year. Ganfeng said last month it expects to report a loss of 1.4 billion yuan ($192 million) to 2.1 billion yuan for 2024, reversing a profit of nearly 5 billion yuan in 2023.

By Doug Young

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