Lithium Woes Hold Top China Producers to 2024 Losses

China’s two biggest lithium producers remain in the red nine months into the year as the battery-metal downturn continues squeezing the industry.

Bloomberg
Published31 Oct 2024, 04:46 AM IST
Lithium Woes Hold Top China Producers to 2024 Losses
Lithium Woes Hold Top China Producers to 2024 Losses

China’s two biggest lithium producers remain in the red nine months into the year as the battery-metal downturn continues squeezing the industry.

Tianqi Lithium Corp. and Ganfeng Lithium Group Co. both reported third-quarter results Wednesday that highlight the challenges of producing the metal amid slumping prices and a supply glut. Tianqi posted a net loss of 496 million yuan for the quarter, compared with profit of 1.65 billion yuan in the same period last year. Ganfeng’s net quarterly profit fell 25% to 120 million yuan.

Tianqi’s losses widened to 5.7 billion yuan for the first nine month of the year, while Ganfeng’s losses narrowed to 640 million yuan over the same period.

Global lithium prices have plunged from two years ago due to a flood of new supply and softening growth in demand from the electric-vehicle sector. In China, the material is 88% cheaper than its peak in late 2022.

Tianqi said its output and sales volumes climbed in the third quarter as it ramped up new plants, though there was a “substantial decline” in prices and gross profit from a year earlier.

Ganfeng remains optimistic on lithium demand for the medium to long term, executives told investors last week in an online briefing. The company sees global supply growth at a relatively low level next year given current pricing.

The drawn-out slump in lithium has already forced an array of stalled projects, scrapped deals and production cuts across the world as producers seek to weather the downturn and protect under-pressure margins.

Australian miner Pilbara Minerals Ltd. on Wednesday said it would temporarily put a plant in care and maintenance from December to reduce costs. That followed a move three months ago by Albemarle Corp. in Australia, when it shut half of its processing capacity and put its expansion plans there on hold.

This article was generated from an automated news agency feed without modifications to text.

Catch all the Business News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

MoreLess
First Published:31 Oct 2024, 04:46 AM IST
Business NewsNewsWorldLithium Woes Hold Top China Producers to 2024 Losses

Get Instant Loan up to ₹10 Lakh!

  • Employment Type

    Most Active Stocks

    Bharat Electronics share price

    288.45
    03:58 PM | 30 OCT 2024
    4.85 (1.71%)

    Tata Motors share price

    840.30
    03:52 PM | 30 OCT 2024
    -2.75 (-0.33%)

    Tata Steel share price

    148.95
    03:59 PM | 30 OCT 2024
    -1.1 (-0.73%)

    Wipro share price

    565.50
    03:55 PM | 30 OCT 2024
    3.3 (0.59%)
    More Active Stocks

    Market Snapshot

    • Top Gainers
    • Top Losers
    • 52 Week High

    UTI Asset Management Company share price

    1,281.70
    03:29 PM | 30 OCT 2024
    79.5 (6.61%)

    Coforge share price

    7,749.05
    03:29 PM | 30 OCT 2024
    -6.45 (-0.08%)

    Deepak Fertilisers & Petrochemicals Corporation share price

    1,216.55
    03:58 PM | 30 OCT 2024
    -17.1 (-1.39%)

    City Union Bank share price

    174.35
    03:53 PM | 30 OCT 2024
    -2.6 (-1.47%)
    More from 52 Week High

    Honeywell Automation India share price

    45,180.00
    03:29 PM | 30 OCT 2024
    -3809.05 (-7.78%)

    Multi Commodity Exchange Of India share price

    6,400.00
    03:29 PM | 30 OCT 2024
    -434.25 (-6.35%)

    Chennai Petroleum Corporation share price

    646.40
    03:59 PM | 30 OCT 2024
    -34.8 (-5.11%)

    Dixon Technologies (India) share price

    14,190.00
    03:29 PM | 30 OCT 2024
    -741.6 (-4.97%)
    More from Top Losers

    Redington India share price

    182.80
    03:56 PM | 30 OCT 2024
    16.05 (9.63%)

    Poly Medicure share price

    2,790.60
    03:29 PM | 30 OCT 2024
    222.6 (8.67%)

    Indian Railway Finance Corporation share price

    155.55
    03:56 PM | 30 OCT 2024
    12.05 (8.4%)

    Easy Trip Planners share price

    32.38
    03:54 PM | 30 OCT 2024
    2.49 (8.33%)
    More from Top Gainers

    Recommended For You

      More Recommendations

      Gold Prices

      • 24K
      • 22K
      Bangalore
      80,475.00670.00
      Chennai
      80,481.00670.00
      Delhi
      80,633.00670.00
      Kolkata
      80,485.00670.00

      Fuel Price

      • Petrol
      • Diesel
      Bangalore
      102.86/L0.00
      Chennai
      100.75/L0.00
      Kolkata
      104.95/L0.00
      New Delhi
      94.72/L0.00

      Popular in News

        HomeMarketsPremiumInstant LoanMint Shorts