Written by Siyi Liu and Colleen Howe
BEIJING (Reuters) – The chairman of Ganfeng Lithium, China's leading supplier of battery metals, said China's lithium industry would benefit from stable battery metal prices, which are on a long-term upward trend. .
Ganfeng Lithium Chairman Li Liangbin told Reuters on Friday that demand for lithium from producers such as power batteries and energy storage equipment will continue to increase amid the “irreversible trends” of the global energy transition.
In response to questions from Reuters, he wrote that some volatility is inevitable during an uptrend.
Lithium prices in China have fallen sharply over the past year as supply soars and demand slows. Spot prices for lithium carbonate in the world's top electric vehicle market are hovering around 100,000 yuan ($14,000) per tonne, about one-sixth of the peak in November 2022.
The decline could hit miners' profits and curb global output.
“If the lithium price stabilizes between 80,000 and 150,000 yuan and leaves a certain level of profit for both upstream and downstream (companies) in the industrial chain, it may be the best development environment for the entire industry.” National People's Representative Li said. Congress at the annual general meeting of the National Assembly in Beijing.
Li said China and Chinese companies have taken a number of measures to stabilize prices, such as launching a lithium carbonate futures trading platform to ensure stable supply and prices, and companies purchasing in long-term contracts. He said that he has taken the following steps.
Geopolitics presents companies with certain barriers to entry and the risk of investment failure, Lee wrote. The company has major investments in overseas resources, including Australia and Argentina. We export to Europe, Japan, and Korea.
Reuters reported in November that Gangfeng's subsidiary in Mexico was forced to indefinitely postpone its mining start target after the local government canceled nine mining concessions.
Meanwhile, geopolitics will help further international cooperation, such as Chinese companies partnering with locals to start production, Li said.
(1 dollar = 7.1855 Chinese Yuan)
(Reporting by Siyi Liu and Colleen Howe in Beijing; Editing by Ryan Woo and William Mallard)
