Eye on Lithium: Ganfeng Lithium’s consumer electronics arm is raising prices citing raw materials costs
All your ASX lithium news for Friday, September 16
Rising lithium prices in recent months have led to a battery-maker and car manufacturer foot race for raw material supplies, and lithium miners and producers have been riding the wave.
But now it looks like those prices are going to increase the costs of smaller lithium batteries used in consumer electronics – and increase the price of those devices for the consumer.
The consumer electronics arm of Chinese lithium producer Ganfeng Lithium is raising the prices for these small batteries, citing a huge cost increase for raw materials.
Xinyu Ganfeng Electronics Co. which makes small polymer lithium batteries for smart wearable products and Bluetooth headset batteries and says the rising prices of minerals including lithium carbonate, cobalt oxide and graphite mean that higher prices will be passed on to customers.
The company also said that anode materials had also been impacted by production and electricity curbs in Inner Mongolia.
A unit of China’s top lithium producer Ganfeng Lithium is raising prices for small batteries used in consumer electronics like headphones that are produced by companies including Xiaomi and Oppo https://t.co/7j27iMwahB
— Bloomberg (@business) September 15, 2022
Only 14 stocks were in the green, 40 were flat and a whopping 77 were red.
The company has flagged the second round of preliminary whole floatation metallurgical test work from lithium diamond core samples from its Marble Bar lithium project (MBLP) achieved a grade of 5.76% Li2O with a recovery rate of 85%.
“Achieving lithium recoveries of 85% is certainly something we are excited about,” MD Ron Mitchell said.
“These results, as did the initial results released in August, fully support the prospect of MBLP becoming a standalone lithium operation in the years to come.”
Further metallurgical test work will be carried out to optimise the flowsheet to improve the concentrate grade.
Sayona says the North American Lithium (NAL) operation is on track for restart of spodumene (lithium) production in Q1 2023, with procurement 94% completed, 95% of required permits received and construction ramping up.
The overall project budget has also been lowered to C$95.5 million from the previous C$97.75 million due to reductions in the scope of work, with commitments to date of C$41.6 million compared to the planned C$45.4 million.
“With the right team in place, an ESG‐friendly operation due to Québec’s clean and green hydro power and the backing of key stakeholders, we are well placed for further growth as the leading lithium producer in North America,” MD Brett Lynch said.
Plus, the company has nabbed promotion to the benchmark S&P/ASX200 index prior to the open of trading on Monday, 19 September 2022.
The company says it completed over 20,000 meters of additional drilling on the Snow Lake Lithium project in Canada, tripling the amount of drilling that can be used towards its resource expansion plans.
“We look forward to the resource upgrade and development at our majority owned Thompson Brothers Lithium Project through Snow Lake Resources,” CEO Christopher Gerteisen said.
“Given the recent activity in the lithium market with higher prices and strong demand from the electric vehicle and battery storage markets the company is well positioned to capitalize on this demand.”
Anson says investors have backed a $50m placement at $0.36 per share which will used to fund complete front-end engineering design work, permitting and ordering of long lead procurement items to accelerate the final investment decision (FID) for its Paradox lithium project in the US, anticipated in the second quarter of 2023.
“The result of the capital raise is an outstanding endorsement of the Paradox Lithium Project and for ‘made in USA’ battery grade lithium carbonate,” executive chairman Bruce Richardson said.
Funds will also be used for further resource expansion including the execution of the company’s Western Strategy, which will be included in a future resource upgrade at Paradox.
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