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Slump in Lithium Prices Hit Ganfeng Lithium Profit

Metal News - Published on Fri, 30 Aug 2019

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China's biggest lithium producer, Ganfeng Lithium Co saw its first half profits plunge 59% as rising supply of the material used in batteries for electric cars caused a slump in prices. Ganfeng, which supplies lithium used in rechargeable batteries to electric vehicle maker Tesla said that its net income totaled 295.8 million yuan (USD 41.70 million) for January to June, versus a restated figure of 725.3 million yuan a year earlier. Its Revenues rose 21% to 2.82 billion yuan thanks to bigger sales volumes, but slumping lithium prices meant the company was unable to cash in.

Prices of lithium carbonate, a chemical used in EV batteries, have dropped nearly 20% this year to around USD 9.25 per kg amid an "avalanche" of supply, consultancy CRU said last week.

Still, Ganfeng said abundant supply and falling prices of spodumene, a mineral mined for its lithium content, "can greatly reduce raw material costs" for the company, which converts the spodumene into lithium chemicals, and "buffer the impact" of low lithium prices.

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Posted By : Rabi Wangkhem on Fri, 30 Aug 2019
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