Is ganfeng lithium s energy storage business profitable

Is Ganfeng a lithium producer?

Ganfeng is ranked the 3rd largest lithium chemicals producer in 2020 with 17.3% market share. They intend to grow their lithium production capacity to a massive 600,000 tpa LCE.

What products does Ganfeng manufacture?

Ganfeng's principal products are lithium chloride, lithium fluoride, lithium carbonate, lithium hydroxide, lithium magnesium alloy, butyl lithium, butyl chloride, catalyst metal lithium, battery metal lithium, and other products (including some lithium batteries).

What is Ganfeng's planned lithium production capacity?

Ganfeng intends to grow their lithium production capacity to 600,000 tpa LCE. That would be almost double the total lithium produced globally in 2019. Ganfeng is ranked the 3rd largest lithium chemicals producer in 2020 with 17.3% market share.

Will ganfeng's JV projects increase its own sourced lithium production?

Looking ahead to the next 3 years, Ganfeng's JV projects (Cauchari-Olaroz & Goulamina) are set to very significantly increase Ganfeng's own sourced lithium production. Valuation looks very attractive again. 2023 P/E is 7.77, 2024 is 7.4. 2023 yield is 1.15%. 2023 net profit margin is a healthy ~35%.

Is Ganfeng Lithium a good stock to buy?

Ganfeng Lithium deserves to trade at a premium due to its leading lithium business and enormous expansion potential in both lithium and battery production. I rate the stock as a long term hold, or accumulate on any significant dips.

When will gangfeng lithium come into production?

Other Ganfeng lithium projects will also potentially start to come into production after 2025 (Sal de la Puna, Pastos Grandes, Avalonia, and others) further boosting their own sourced lithium. Ganfeng is a key lithium supplier to Chinese battery and car companies as well as a supplier for Tesla, Volkswagen, BMW Group, and LG Chem.