The capacity of: Mt Marion spodumene project of Ganfeng Lithium Industry will be upgraded and expanded. It is estimated that the original capacity will be increased by 10-15%.

Ganfeng Lithium Industry (002460.SZ) disclosed the signing of a cooperation agreement with PMI and the progress of the Mt Marion project, said that recently, the company and its wholly-owned subsidiary Ganfeng International signed a "cooperation agreement" with PMI, under which PMI will provide the company with spodumene underwritten in the Mt Marion spodumene project, and the company will process it into lithium compound products agreed by both parties, and the company will be responsible for sales.

At the same time, recently, the company received notice from RIM that the management of RIM is considering the technical transformation and expansion of the capacity of the Mt Marion spodumene project through production process optimization and the development of contact minerals. The expansion project is initially expected to be put into production in the second half of 2022, and the original production capacity is expected to increase by 10-15%. In addition, the contact mine production capacity will be increased, and the additional capacity is expected to be increased by 10-15%. The specific expansion scale depends on the results of process optimization and the actual situation of contact minerals.

This contract is a cooperation reached between the company and PMI in the spirit of mutual benefit and full consideration of the current situation of the lithium market. The signing of the contract will not affect the implementation of the company's underwriting rights in the Mt Marion spodumene project. The company and PMI have the ability to fulfill this contract in terms of capital, personnel, technology and existing production capacity. The signing of the contract will help to strengthen the long-term and stable cooperative relationship between the company and PMI, enhance the company's sustainable profitability, and be conducive to the long-term development of the company. The signing of the contract will have a positive impact on the company's operating results in 2022.