Caixin
Jun 16, 2021 08:16 PM
BUSINESS & TECH

Chinese Lithium Producer to Invest in Mali Mine

What’s new: A Hong Kong subsidiary of Chinese lithium giant Ganfeng Lithium Co. Ltd. (002460.SZ) plans to invest in a spodumene mine in the western African country of Mali to exploit its lithium resources, according to a Monday company filing (link in Chinese).

The investment will be made through GFL International Co. Ltd., which will spend $130 million to acquire 50% of a Netherlands-based special purpose vehicle (SPV) that was created to hold the mining rights to the Mali project.

After the deal is completed, GFL is likely to invest up to $40 million in exploration at the mine, the Hong Kong- and Shenzhen-listed company said.

The context: The Goulamina mine has explored reserves of 108.5 million tons of spodumene, a source of lithium, which is a key raw material for certain kinds of electric-vehicle batteries.

The price of lithium in China has been on the rise this year due to growth of the country’s new-energy vehicle industry.

If the deal goes through, it will be the first time that Ganfeng Lithium has invested in a lithium mine in Africa. The company has invested in lithium projects in Australia, Mexico and Argentina.

Related: Chinese Lithium Producer to Buy Out Mexican Sonora Project Owner

Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full story in Chinese, click here.

Contact reporter Guo Yingzhe (yingzheguo@caixin.com) and editor Michael Bellart (michaelbellart@caixin.com)

Download our app to receive breaking news alerts and read the news on the go.

Get our weekly free Must-Read newsletter.

You've accessed an article available only to subscribers
VIEW OPTIONS
Share this article
Open WeChat and scan the QR code
NEWSLETTERS
Get our CX Daily, weekly Must-Read and China Green Bulletin newsletters delivered free to your inbox, bringing you China's top headlines.

We ‘ve added you to our subscriber list.

Manage subscription
PODCAST
Caixin China Biz Roundup: Police Interrogate Woman for Kimono Photoshoot
00:00
00:00/00:00