[SMM Analysis] Feng Lithium Returned to Profit in H1 2026, with Resource and Capacity Dual Drivers Delivering Notable Results

The 2026 interim report released by Ganfeng Lithium on August 30 shows that the company achieved H1 revenue of 23.097 billion yuan, a 175.75% YoY surge, while net profit attributable to shareholders of the listed company reached 4.257 billion yuan, successfully swinging from a loss to a profit compared with the same period last year and delivering an impressive performance. Behind the strong performance rebound was the combined force of the continued deepening of the company’s global lithium resource footprint and the coordinated release of upstream and downstream capacity.

Overseas Resources Make Progress on Multiple Fronts as Upstream Supply Capability Is Steadily Strengthened

In Australia, the company’s core lithium mine Mount Marion is undergoing a historic upgrade in its mining method. During the reporting period, the project was building a flotation plant and underground mining works, and it will later upgrade from single open-pit mining to a combined “open-pit + underground” mining method. The new flotation plant will significantly improve the recovery rate and enable the entire line to produce higher-grade lithium concentrates; the underground mining works will effectively add high-grade mineral resources at depth below the open pit and significantly extend the overall life of the mine. According to plan, the overall upgrade will be completed before 2028, by which time the Mount Marion spodumene project is expected to achieve annual capacity of 600,000 mt (converted to lithium concentrates at a 6% grade), providing the company with more high-quality, low-cost lithium raw material.

Meanwhile, the South American salt lake lithium extraction segment also delivered encouraging news. In H1 2026, the Cauchari-Olaroz project in Argentina produced 19,000 mt of lithium carbonate, with smooth and stable production operations. More notably, the project’s Phase II plan (with annual capacity of 45,000 mt LCE) was successfully selected for the Argentine government’s RIGI incentive program and will fully benefit from the relevant preferential policies, providing solid policy support for subsequent stable operations and cost optimization. The company said it will continue to advance Phase II capacity construction, further leverage the cost advantages of salt lake resources, and strengthen its competitiveness in the global salt lake lithium extraction segment.

The company’s resource footprint in Africa is also expanding at an accelerating pace. In H1 2026, Phase I of the Goulamina project in Mali produced a total of 233,800 mt of lithium concentrates, further strengthening resource supply capability. Currently, Phase II of the project has completed feasibility study work and is gradually moving into construction; as capacity is gradually released, Goulamina will become another important low-cost, high-quality supply source within the company’s lithium resource system. In addition, the company’s Bambali lithium mine project in the Republic of Côte d'Ivoire also made phased progress. According to the latest detailed survey results, the project’s estimated exploration resource area is 1.31 km², with indicated + inferred ore resources within the mining rights area totaling 38.8206 million mt, lithium oxide metal oxide content of 471,800 mt, and an average grade of 1.22%. The project's initial construction target is mining and beneficiation capacity of 2 million mt/year using open-pit mining. It is currently in the infrastructure construction stage, with capacity ramp-up expected to begin in 2027.

China's Processing Capacity Upgraded, Lithium Chemical Lines Move Toward High-End

While the resource side is expanding sources, the company is also advancing efficiency enhancement in its domestic lithium chemical processing. During the reporting period, Xinyu Ganfeng upgraded high-purity lithium carbonate capacity to 30,000 mt/year and lithium fluoride capacity to 25,000 mt/year, respectively; both are currently in the trial production stage. In addition, Qinghai Ganfeng's Phase I lithium metal project with an annual capacity of 1,000 mt has also entered trial production and is expected to officially commence production in Q3 2026. These production line upgrades not only enhanced the supply capacity of high-end lithium chemical products, but also reflected the company's lean management approach of 'proactively reducing costs at the detail level'—by raising the digital and intelligent level of its plants and accelerating the cultivation of new quality productive forces, the company reserved flexibility for future profit margin expansion.

Mengjin Mining Operating Steadily; Lepidolite and Tantalum-Niobium Advancing in Parallel

In comprehensive utilization of China's resources, Mengjin Mining maintained stable and orderly production operations in H1, with concentrate product quality indicators consistently meeting standards. Cumulative output was 42,300 mt of lepidolite concentrates with a lithium oxide grade of 4.25%, along with 106.1 mt of associated tantalum-niobium concentrates with a tantalum pentoxide grade of 10%, achieving comprehensive recovery of multiple metals and further enriching the company's product matrix.

Market Environment Catalyzes Performance Release; Positive Outlook for H2

Overall, in H1 2026, lithium chemical prices saw large fluctuations but rose notably YoY; combined with sustained robust demand in the energy storage market, the company's lithium battery segment performance improved notably. Synergies between the company's resource and smelting segments were fully released during the price upcycle, together driving strong YoY growth in overall operating results. Looking ahead to H2, as projects under construction advance steadily and capacity utilization rates remain high, Ganfeng Lithium is expected to continue consolidating its leading position in the global lithium ecosystem during the industry upcycle.

Source: Ganfeng Lithium Semi-Annual Report