Tianqi’s interim profit soars 12,000 per cent amid lithium supply crunch as the world scrambles for EV battery metal
- Tianqi Lithium’s first-half net income skyrocketed by almost 12,000 per cent from a year earlier to a record 10.3 billion yuan
- Ganfeng Lithium reported net income soaring more than 400 per cent in the first half to 7.25 billion yuan
China’s biggest lithium miners are enjoying a bumper earnings season just as the price of the battery metal approaches record highs amid a supply crunch.
Ganfeng Lithium said its production and sales were generally lower than expected in the first half. However, it’s forecasting an improvement for the second half, citing the completion of its Mt Marion mine expansion in Australia, new capacity in China, and the relaxation of virus curbs. The company also unveiled expansion plans for battery production in Chongqing and Jiangxi.
“Continued robust EV demand globally, and record-breaking heat and drought in the southwest of China are the key drivers for the market,” Benchmark Mineral Intelligence said in a note last week. “Longer-term, the lithium market is likely to remain tight this decade, but become more balanced by around 2026.”
Tianqi Lithium’s share prices have risen 3 per cent in Shenzhen so far this year, while Ganfeng Lithium has fallen by 17 per cent.