Ganfeng Lithium to make new type of lithium batteries for EVs
Ganfeng Lithium Co. Ltd., the world’s largest lithium metal producer, announced that it is investing in two projects that will produce a “new type” of lithium batteries.
The proposed investments, which represent a total of 15GWh annual capacity and will be self-funded, is subject to the approval of its shareholders at the end of this month. It recently secured investments for its battery unit Ganfeng LiEnergy totalling CNY973.1 million (USD150.2 million).
First production is expected within two years from the start of construction, which is slated to begin within three months. The second project will be operational by October 2023.
The 15 GWh total planned capacity marks a major escalation in Ganfeng’s battery ambitions as demand for electric vehicles (EVs) grows. Ganfeng Lithium is best known as a supplier of battery-grade lithium to clients including electric vehicle (EV) maker Tesla.
The Chinese company, whose shares are dual-listed in the Shenzhen Stock Exchange and the Hong Kong Stock Exchange, said in a filing that “in order to build a competitive new-type lithium battery production base and to realize the company’s development goal of becoming bigger and stronger,” its subsidiary, Jiangxi Ganfeng LiEnergy Technology Co., Ltd. (Ganfeng LiEnergy) intends to invest CNY3 billion (USD463.2 million) to construct a new type of lithium battery project with 5GWh annual capacity in Jiangxi, where Ganfeng Lithium is based.
Additionally, Ganfeng LiEnergy will invest CNY5.4 billion (USD833.7 million) to set up a new independent company to build a new type of lithium battery with an annual capacity of 10 GWh and an Advanced Battery Research Institute project in Liangjiang New District, Chongqing.
The filing did not disclose any further details on the “new type” of lithium battery. However, it said the new institute would provide technical support for “various solid-state batteries,” which use solid electrolytes rather than flammable liquid ones.
Ganfeng Lithium Group covers a wide swath of the lithium battery supply chain, from lithium resource development, refining and processing to battery manufacturing to battery recycling. Its products are widely used in electric vehicles (EVs), energy storage, 3C products, chemicals and pharmaceuticals. The Group’s lithium resources are located across the globe and it is the only company in the lithium industry that has commercial-scale technologies to extract lithium from brine, ore and recycled materials. The Group also has complete battery manufacturing and recycling technology, providing sustainable value-added solutions to battery manufacturers and electric vehicle manufacturers.