Zijin Mining Group (601899) announced a significant update regarding their lithium production targets. The company will fall short of its 25,000-ton goal for 2024.

Zijin Mining Faces Challenges in Lithium Output

The company revealed this to investors after posting a 46% rise in first-half earnings. Meanwhile, Zijin plans to control the pace of project commissioning and construction due to industry oversupply challenges.

Lithium Production Adjustments

While Zijin Mining primarily excels in copper and gold, it has invested in lithium exploration across China, Argentina, and the Democratic Republic of Congo. The price drop prompted Zijin to revise its future lithium production targets, lowering next year’s goal by 20,000 tons to 100,000 tons.

Market Effects and Forecasts

The market faces low spot prices for lithium carbonate, essential for electric car batteries, due to high supply and sluggish demand. UBS Group AG adjusted its price forecasts, projecting a market surplus until 2027.

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