The lithium industry in China is poised for a promising trajectory, with expectations of a sustained uptrend in the battery metal market, as highlighted by the chairman of Ganfeng Lithium, a prominent Chinese supplier in the sector. Emphasizing the significance of price stabilization for the battery metal, Chairman Li Liangbin expressed confidence in the long-term growth prospects driven by escalating demand from power battery producers, energy storage facilities, and other key sectors. Against the backdrop of an inevitable global energy transition, Ganfeng Lithium anticipates a continuous expansion in lithium demand, albeit acknowledging the likelihood of periodic fluctuations during this upward trajectory.
Amidst a recent downturn in China’s lithium prices attributed to increased supplies and subdued demand, the market has experienced a notable decline from its peak in November 2022. Currently hovering around 100,000 yuan per ton, approximately one-sixth of its previous high, lithium carbonate prices have exerted pressure on miners’ profitability and raised concerns regarding potential constraints on global output. Chairman Li emphasized the importance of maintaining lithium prices within a range of 80,000 to 150,000 yuan to ensure profitability across the industry value chain and foster a conducive environment for sustainable growth.
In response to the market challenges, China and its companies have implemented various measures to stabilize prices, including the establishment of a lithium carbonate futures trading platform and the adoption of long-term contracts to ensure price stability and supply consistency. Despite facing geopolitical complexities that pose entry barriers and investment risks, Ganfeng Lithium remains committed to international partnerships and investments, with substantial ventures in overseas resources such as Australia and Argentina. The company’s strategic export markets include Europe, Japan, and South Korea.
While geopolitical factors have presented challenges such as project delays, as seen in Mexico where concessions were cancelled, Chairman Li remains optimistic about the potential for enhanced international cooperation. Collaborative initiatives between Chinese entities and local partners are envisioned as key drivers for establishing production facilities and navigating geopolitical uncertainties in the lithium market.