Ganfeng Lithium Group Co. (002460) has announced a delay in project capital expenditure as it faces financial losses amid the lithium market downturn. The company reported a net loss of 760.4 million yuan, prompting a strategic focus on projects with immediate returns.

The lithium industry’s current oversupply has led to a decline in prices, squeezing profit margins for producers. As a result, Ganfeng aims to prioritize projects in China, Argentina, Australia, Mali, and Mexico that offer short-term benefits.

Ganfeng Lithium’s Strategic Adjustments

Ganfeng plans to optimize capital efficiency while deferring expenditure on medium- and long-term projects. Although the company will continue acquiring resources, expansion aligns with future demand trends.

Lithium Market Challenges

UBS Group AG forecasts a supply surplus in the lithium market until 2027, further complicating the market scenario. Despite these challenges, Ganfeng invested 38 million yuan in futures trading, yielding a modest profit.

Impact on Ganfeng’s Share Performance

The volatility of the sector has affected the company’s shares, which peaked in 2021 but now stand significantly lower. The future remains uncertain as the industry navigates market oversupply.

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