Ganfeng Lithium Expands Stake in Mali Lithium Project

Ganfeng Lithium, based in Xinyu, Jiangxi province, has secured a significant deal to increase its ownership in one of the world's largest lithium projects, located in Mali, West Africa. The company has finalized an agreement to purchase a 40% stake in the Goulamina project from Australia’s Leo Lithium for $342.7 million. This acquisition enhances Ganfeng’s strategic position, boosting its lithium production capacity which ranks as the third largest globally and the largest in China.

This transaction aligns with Ganfeng's broader strategy to integrate its operations across the lithium production chain, supporting the growing demand from the electric vehicle industry. With this investment, Ganfeng aims to enhance its control over the Mali Lithium project, ensuring a more stable lithium supply for its operations.

Despite Mali's new mining code allowing the government to claim up to a 35% stake in mining projects, the agreement remains beneficial for Ganfeng. Analysts view this expansion as a strategic move to improve the company's self-sufficiency in lithium production from 40% to an anticipated 70%, potentially bolstering its profit margins amidst fluctuating lithium prices.

The Goulamina project, situated approximately 150km south of Bamako, Mali's capital, is among the largest undeveloped hard rock lithium deposits globally. This project is expected to commence production of spodumene—a key lithium-bearing mineral—by the third quarter of this year.

The deal also follows a recent $60 million agreement between Leo Lithium and the Mali government to resolve disputes related to the Goulamina project, smoothing the path for future development. This expansion by Ganfeng is a pivotal step in securing a robust position in the global market for lithium, which is essential for battery production in the burgeoning electric vehicle sector.