Ganfeng Lithium

Ganfeng Lithium Co., Ltd.

Company type	Public
Industry	Lithium manufacturing, Battery manufacturing, Metals
Founded	2000 (2000) in Xinyu, Jiangxi, China
Founder	Li Liangbin, Li Huabiao
Headquarters	Xinyu , China
Area served	Worldwide
Key people	Li Liangbin (Founder)
Products	Lithium, lithium salts, lithium-based products, metals, batteries

Ganfeng Lithium Co., Ltd. stands as a leading manufacturer of lithium, lithium-based products, various metals, and batteries, headquartered in Xinyu, Jiangxi, China. Founded in 2000 by Li Liangbin, it has grown to become the largest producer of lithium salts in China and ranks third worldwide, while also holding the position of the second-largest lithium processor globally, trailing only Chile's Sociedad Química y Minera. The company is publicly listed on both the Shenzhen Stock Exchange () and the Hong Kong Stock Exchange (), boasting a market value near US$26 billion.

Origins

Ganfeng Lithium was founded in 2000 in Xinyu City, Jiangxi by Li Liangbin alongside Li Huabiao. Initially concentrating on chemical processing, the firm established its inaugural lithium production facility by 2003. Both co-founders Li Liangbin and Wang Xiaoshen originate from modest rural beginnings. Since its inception, Ganfeng has broadened its scope internationally through mining ventures and, beginning in 2017, ventured into battery manufacturing to meet the rising demand from the electric vehicle sector. Wang emphasized the strategic benefit of integrating Ganfeng’s lithium chemical supply with its battery production to capitalize on economies of scope.

Products and activities

Often referred to as a "lithium supermarket," Ganfeng supplies an extensive variety of lithium-related products such as lithium salts, additional metals, and batteries. By 2021, its lithium salt production capacity was estimated at 120,000 tons annually. As of 2019, it held the title of the world’s largest pure lithium producer. By 2022, Ganfeng had become China’s top lithium salt manufacturer and ranked third globally, while also maintaining its status as the second-largest lithium processor worldwide after Chile’s Sociedad Química y Minera. In 2020 alone, it accounted for approximately 24% of global lithium hydroxide output. Prominent customers include Tesla, BMW, and LG Chem.

To secure long-term access to competitive resources, Ganfeng actively invests overseas. It controls three lithium brine projects in Argentina and was Lithium Americas’ largest shareholder in 2021. The company invested in Argentina’s Mariana lithium-potassium brine project in 2014 and acquired rights to Australia’s Mount Marion spodumene project through Reed Industrial Minerals in 2015. In 2021, Ganfeng purchased a 50% interest in the Goulamina lithium mine located in Mali’s Ségou Region. It also holds various investments and contractual agreements within China, Ireland, Mexico, and the Democratic Republic of the Congo.

Operating internationally exposes Ganfeng to geopolitical challenges. It is vulnerable to potential repercussions from U.S. governmental policies targeting Chinese enterprises as well as Chinese regulations impacting the electric vehicle industry. Furthermore, some Latin American nations have enacted policies that could limit Ganfeng’s activities; for instance, Mexican president Andrés Manuel López Obrador has initiated efforts to nationalize lithium resources within Mexico.

Stock market listings

Ganfeng Lithium is dual-listed on both the Hong Kong Stock Exchange and the Shenzhen Stock Exchange. As of August 2022, its market capitalization stood at approximately US$26 billion.

The company launched its initial public offering (IPO) on the Shenzhen Stock Exchange on 10 August 2010 by issuing 25 million new shares priced at 20.7 RMB each, raising a total of 517.5 million RMB.

On 11 October 2018, Ganfeng completed an IPO on the main board of the Hong Kong Stock Exchange, issuing 200,185,800 H shares with prices ranging between 16.50 and 26.50 HKD, generating proceeds of 3.171 billion HKD aimed at expanding its lithium business. Key cornerstone investors included the China Structural Reform Fund, LG, Samsung, Dongfeng Motor Corporation, FAW Group, and GoldenSand Capital.

In July 2022, Ganfeng announced that it was under investigation by the China Securities Regulatory Commission for alleged insider trading activities. Following this announcement, its shares declined by 7% on the Shenzhen exchange.

See also

• Tianqi Lithium