(Yicai) Jan. 18 -- Chinese battery materials supplier Ganfeng Lithium plans to spend no more than USD65 million to further raise its stake in a lithium project in Mali in which it first invested in March 2022.

Ganfeng Lithium intends to hike its stake in Mali Lithium, a joint venture set up by Leo Lithium and GFL International that owns the Goulamina spodumene project, 60 percent from 55 percent to promote the development and construction of the Goulamina mine, the Xinyu-based firm announced yesterday.

The Goulamina spodumene mine has a mining area of 100 square kilometers and total reserves of 211 million tons of ores and 2.9 million tons of lithium oxide. The mine’s demonstrated reserves calculated based on the Jorc Code were 13.1 million tons of ores and 210,000 tons of lithium oxide. The first phase of the project, with an annual production capacity of 506,000 tons of spodumene concentrate, is under construction and expected to come on stream this year.

The stake increase is in line with Ganfeng Lithium’s upstream and downstream integration and development strategy in the new energy vehicle industry, the company added.

With the first investment in the Goulamina project, Ganfeng Lithium secured the rights for all the spodumene concentrate produced in the first phase and 70 percent of that produced in the second phase. The ratio for the third phase will depend on the stake the company owns in the project.

Ganfeng Lithium has been investing in overseas lithium mines, such as the Mariana lithium-potassium brine mine and the PPG lithium salt lake in Argentina, the Blackstair spodumene project in Ireland, the RIM and Mount Marion project in Australia, and the Sonora lithium clay in Mali. The company’s lithium salt production capacity is expected to reach 300,000 tons by 2025 and 600,000 tons by 2030.

Editor: Futura Costaglione