Saturday 24 February 2018

Tesla Energy rEVolution M&A Chronicles: Top China Lithium Producer To Extend Deal Spree With Listing.

International Lithium Congratulates Our Join Venture Partner Ganfeng Lithium: China's Largest Lithium Producer Ganfeng Files For $1B HK IPO.

"We would like to congratulate our Joint Venture Partner Ganfeng Lithium with filing for $1 Billion Dollars Hong Kong IPO. Happy Chinese New Year to our Friends!" Commented Kirill Klip Executive Chairman of International Lithium Corp. Read more.

SQM Lithium OverSupply Scare 2.0 Aftermath: As Heard On Bloomberg - "There Is Not Enough Lithium To Make All Cars Electric".

Ganfeng Lithium is UP another 8% after Chinese Holidays, the total move is UP 28% after almost 50% correction. Succesful $1 Billion Dollars IPO in Hong Kong for the largest integrated lithium materials producer in China will bring the attention back.

Lithium Americas with Investment Stake and JV with Ganfeng Lithium.

Kirill Klip: International Lithium Corp. Presentation At Wentworth. "Lithium Race And Energy rEVolution - The World Just Before The INTERNET."

International Lithium And Ganfeng Lithium Approve $17M Budget For Mariana JV, Argentina.

“We welcome very positive developments at the Mariana JV with our partner Ganfeng Lithium,” commented Kirill Klip, Executive Chairman of ILC. “This comprehensive budget for 2018 is expected to bring the Mariana JV to important valuation milestones for the Company; preliminary economic assessment and pre-feasibility studies. We are looking forward to the confirmation that membrane technology provided by Ganfeng Lithium will allow our joint venture operation to produce lithium hydroxide in Argentina.” Read more.


Please read legal disclaimer. There is no investment advice on this blog. Always consult a qualified financial adviser before any investment decisions. DYOR.


 Top China Lithium Producer To Extend Deal Spree With Listing.

This article is written by the Bloomberg News team. It appeared first on the Bloomberg Terminal. 

Ganfeng Lithium Co., China’s top producer of the metal that’s used in electric vehicle batteries, will deploy proceeds from a planned Hong Kong listing to extend an acquisition spree that’s seen the company invest in projects from Ireland to Australia.

The supplier, based in Jiangxi province in the country’s southeast, will target expansions through further exploration, and plans “to continue to actively explore the possibility of acquiring further sources of lithium in order to enrich our core portfolio,” according to a filing dated Feb. 14 lodged with the Hong Kong stock exchange.

Proceeds will also be deployed to add battery production capacity, with a focus on solid-state technology, and to expand a recycling unit able to retrieve raw materials from spent cells.

“The lithium industry in 2018 will be characterized by M&A,” with Ganfeng’s listing to boost the producer’s firepower to expand across the sector’s supply chain, Chris Berry, a New York-based analyst on energy metals, and founder of House Mountain Partners LLC, said in an email. “Ganfeng’s strategy of vertical integration is the way to survive and thrive as the lithium market grows dramatically.”

Ganfeng didn’t immediately respond Friday to an e-mailed request to confirm the planned timeframe for its proposed listing and the expected value of the proceeds. Ganfeng holds an existing listing on the Shenzhen Stock Exchange. Citigroup Inc. is sole sponsor of the listing, according to the filing.

Lithium production probably needs to quadruple within a decade to meet demand for electric vehicles, a supply scenario that’s rare in the history of any commodity, Goldman Sachs Group Inc. analysts said in an Oct. 12 note. The industry is likely to require a second wave of new projects beyond the mid-2020s to keep pace with demand, according to Bloomberg New Energy Finance.

Ganfeng, currently the sector’s third-largest producer of lithium compounds, will increase its market share to about 17 percent this year, leapfrogging Chile’s Soc. Quimica & Minera de Chile SA to become second only to Albemarle Corp., according to a CRU Group study cited in the listing.

The supplier’s plans to add new production lines in China in 2018 will boost capacity and add a recycling facility capable of handling about 34,000 metric tons of used batteries a year, according to the document.

Ganfeng, which sells products to more than 10 countries, supplies the world’s tier-one battery producers and has been in discussions with leading global vehicle manufacturers, it said. Funds from the listing will also be used to offer financial assistance to Lithium Americas Corp., a project developer, and to boost research work on solid-state batteries, according to the filing.

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