Ganfeng Lithium: Lithium Salt Supply-Demand Balance May Change after 2025

SHANGHAI, Aug 18 (SMM) - Li Liangbin, chairman of Ganfeng Lithium, said that the current lithium salt production capacity is rapidly increasing, and the may usher in a new climax of capacity release in mid-2023. As for lithium battery demand and capacity expansion, he expects to the climax to come in during 2024-2025, and then slow down afterwards. Therefore, the supply and demand balance of lithium salt may change by 2025, thus subverting the price trend. But he added that in the future, profits will still be distributed reasonably, and it is unlikely that the profits of downstream new energy vehicle companies will be taken away by lithium salt companies.

It is worth mentioning that, according to recent research by SMM, the supply of lithium carbonate is still tight in the short term owing to factors such as the intensifying power rationing in Sichuan province, which has resulted in the shutdown of some enterprises. However, this round of power cuts has also affected downstream LFP factories among others, and the demand side also experienced some reductions. Considering that the power rationing will last until August 20, short-term capacity release will be hindered due to causes like environmental protection requirement, power rationing and force majeure factors. But in the long run, with the increase in the penetration rate of new energy vehicles, the carbonate demand is still relatively prosperous.

According to the SMM Prices, the spot price of domestic battery-grade lithium carbonate added 2,000 yuan/mt today to 476,000-482,000 yuan/mt, with an average of 479,000 yuan/mt.

Referring to the layout in Yichun city, Li said that after the Company conducted a comprehensive and detailed survey of resources in Yichun, the total reserves have been expanded substantially, so it is expected that the production capacity of lithium salts in Yichun will be greatly improved. He said that the lithium salt production capacity in the region will soon reach 200,000 mt, and 400,000 mt by 2025.

In addition, Ganfeng Lithium is also preparing to produce ultra-thin and ultra-wide lithium metal strip in Yichun, which will be taken as a production base for lithium metal anodes. In addition, through the cooperation with Shanghai Jiaotong University, the Company is now developing new aluminium-lithium alloy materials.

On August 13, Ganfeng Lithium stated on the social platform that the Company's current lithium metal capacity is 2,150 mt/year, and it plans to expand the capacity to 7,000 mt/year in the future for lithium metal and products.