(Yicai) Feb. 14 -- China's Ganfeng Lithium has kicked off production at its Mariana Salt Lake project in northern Argentina, with plans to add 20,000 tons of lithium chloride to its annual capacity.

The project, which is wholly owned by the Chinese firm, contains proven reserves of around 8.1 million tons of lithium carbonate equivalent, the Jiangxi province-based mining company announced yesterday. Construction began in June 2022.

Ganfeng has invested in several lithium salt lake projects in Argentina, including the Cauchari-Olaroz lithium brine project, which began operations in 2023 and is currently ramping up production. Two additional salt lake assets owned by the company in Salta province, Pozuelos and Pastos Grandes, remain under construction.

The lithium giant's financial performance has been affected by plummeting battery material prices. Based on its latest annual forecast, Ganfeng expects to report a net loss of CNY1.4 billion to CNY2.1 billion (USD192 million to USD288.1 million) for last year, in contrast to a net profit of CNY5 billion in 2023. The company's lithium salt business represented 68 percent of total revenue in the first half of last year.

Ganfeng's stock price [SHE: 002460] closed up 0.8 percent at CNY36.01 (USD4.90) after rising as much as 3.4 percent during the day.

Editor: Emmi Laine