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Chinese lithium firm Ganfeng swings to profit on EV demand
Ganfeng Lithium expects Q1 net profit of 1.6 billion yuan (US$235 million) to 2.1 billion yuan (US$308 million), compared with a loss of 360 million yuan (US$52.8 million) a year earlier.
Higher lithium prices and stronger orders for lithium products lifted earnings.
The company said lithium producer listed in Hong Kong and Shenzhen said demand for lithium salts from downstream customers remained strong.
Analysts said higher fuel costs tied to Middle East tensions could push more consumers toward EVs.
🔗 Source: South China Morning Post
🧠 Food for thought
Implications, context, and why it matters.
Ganfeng’s turnaround rests on more than price moves
- The profit forecast follows a rough stretch. Ganfeng logged a 500 million yuan (US$73.3 million) net loss in the first half of 2025 1.
- Ganfeng is pulling more of the supply chain in-house through vertical integration. It targets a lithium self-supply rate above 50% in fiscal year 2025, which sits above the industry average 1.
- Newer assets support the plan, such as the Goulamina project in Mali. The lithium mine helps buffer swings in raw material costs 1.
- Stronger operations leave Ganfeng better placed to ride a rebound in lithium carbonate prices to above 80,000 yuan (US$12,000) per tonne. Prices had dipped below 70,000 yuan (US$10,000) per tonne between May and June 2025 1.
Ganfeng profits add to China’s influence in battery raw materials
- China leads lithium processing. It held 76% of global lithium smelting capacity in 2022 2.
- Belt and Road Initiative countries have also drawn Chinese-backed activity. Projects involving Chinese companies made up 19% of lithium resources as of June 2023, within an infrastructure and investment program backed by China 2.
- The US is working to grow lithium supply outside China. Efforts include a US$2.23 billion loan from the US Department of Energy to Lithium Americas, a lithium producer listed on the Toronto Stock Exchange and New York Stock Exchange, for its Thacker Pass project in Nevada 3.
