On July 2nd, Ganfeng Lithium (002460.SZ) announced that its wholly-owned subsidiary, Ganfeng International, has completed the acquisition of Mali Lithium B.V. Under Leo Lithium Limited. The acquisition of the remaining 40% equity was completed at a price of 343 million US dollars, achieving 100% control. Meanwhile, the first phase of the Goulamina spodumene project in Mali, with an annual production capacity of 506,000 tons of lithium concentrate, has been officially put into operation, marking that the strategic resource layout of this Chinese lithium industry giant in Africa has entered a substantive output stage.
According to the announcement, the first phase of the Goulamina spodumene project is designed to have an annual production capacity of 506,000 tons of lithium concentrate. After the expansion of the second phase, the production capacity will reach 1 million tons. The mining area of this project covers 100 square kilometers. The total proven lithium resources are approximately 7.14 million tons of lithium carbonate equivalent (LCE), with an average lithium oxide grade of 1.37%. It is one of the largest undeveloped high-grade lithium mines in the world. As the project's production capacity is gradually released, Ganfeng Lithium will obtain a stable and high-quality supply of lithium resources, with a significant increase in its self-sufficiency rate of resources, thus building a moat for the company's cost competition in the global lithium market.
The completion of this full ownership has further strengthened Ganfeng Lithium's control over the Goulamina project. It is learned that the export transportation route of lithium ore from Mali to China has been launched simultaneously, providing logistics support for the output of project capacity. Analysts point out that Africa, as a new global hotspot for lithium resources, the commissioning of the Goulamina project will help Ganfeng Lithium build a global resource triangle layout of "Australia + Argentina + Mali", enhancing its resource guarantee capacity in the global new energy industry chain.
As the first large-scale spodumene project to go into production in Africa, Goulamina's entry into the market will have a chain reaction on the global lithium supply pattern. According to estimates, the first-phase capacity of 506,000 tons of lithium concentrate can be equivalent to approximately 63,000 tons of lithium carbonate equivalent, which is equivalent to 5% of the global lithium supply in 2024. Industry experts predict that with the continuous release of low-cost lithium mines in Africa, it may exert downward pressure on lithium prices. However, in the long term, the stable supply of high-quality resources will contribute to the healthy development of the industry.
At present, Ganfeng Lithium is accelerating the development of global lithium resources. Except for the Goulamina project, the company's Mariana Salt Lake project in Argentina, Mount Marion project in Australia, etc. are all in the stage of ramp-up production capacity. According to the company's plan, the lithium salt production capacity target will reach 600,000 tons by 2030, among which the projects in Africa and South America will contribute significant increases. The commissioning of this project in Mali marks a crucial step for Ganfeng Lithium towards becoming the global leader in the lithium industry.
Industry insiders comment that against the backdrop of cyclical fluctuations in lithium prices, Ganfeng Lithium is undergoing a transformation from a "cyclical stock" to a "growth stock" through its forward-looking layout in the resource sector. With the release of production capacity from the Goulamina project, the company is expected to gain the upper hand in the next upward cycle of the industry.
