China’s Ganfeng Lithium [1772:HK] has announced plans to open a new production plant in Jiangxi, as reported by Reuters on June 9. Specifically, the new plant will have an annual production capacity of 50,000 tons of lithium carbonate equivalent (LCE) per annum. According to its filing of the Shenzhen Stock Exchange, Ganfeng plans to set up a JV company for the new plant Fengcheng city that will convert spodumene into LCE. The filing further stated that the plant will be built in two phases but provided no details regarding construction time or the investment value. The first phase of the plant will have an annual production output of 25,000 tons. No details were provided regarding the second phase of construction.
The move comes as demand for lithium and related products rises across the Mainland amid a boom in the county’s EV market. The new plant is part of Ganfeng’s strategy to increase its total production capacity to 600,000 tons of LCE per annum in a bid to increase its competitiveness and profitability. In February, Ganfeng announced that it will purchase a controlling stake of its Cauchari-Olaroz Argentina lithium project it jointly develops with Lithium Americas [LAC:US] for USD16m.