Ganfeng Lithium to increase stake in Bacanora lithium project in Mexico

Junior miner Bacanora Lithium has signed a new joint venture agreement with offtake partner Ganfeng Lithium after the latter exercised the option to increase its stake in the Sonora lithium project to 50%, it said on February 1.

Chinese lithium producer Ganfeng Lithium previously owned a 22.5% stake in Bacanora’s Sonora lithium project in the Sonora state of Mexico.

The completion of Ganfeng Lithium’s investment in the Sonora lithium project remains subject to regulatory approval in China.

The final outstanding approval is needed from the Chinese State Administration of Foreign Exchange, which is expected in the coming weeks.

Once the approval process is complete, Bacanora Lithium will received £21,883,485 ($29,841,600) from Ganfeng in exchange for 73,955,680 new ordinary shares that will be issued to Ganfeng.

“[Ganfeng] investment further de-risks the project and reduces equity demands on Bacanora’s own shareholders to fund Phase 1 of the project. The Sonora lithium project is now well placed to be in production in 2023 and delivering battery-grade lithium products into the fast-growing energy storage market,” Bacanora chief executive officer Peter Secker said.

First production at the Sonora lithium project is slated to start in 2023. Stage 1 production is expected to deliver 17,500 tonnes per year of lithium carbonate, according to the company’s website.

Lithium is a key raw material used for manufacturing batteries that power electric vehicles and energy storage systems.

Domestic lithium battery-grade prices in China started to post sharp increases at the beginning of the fourth quarter of 2020 and accelerated at the beginning of 2021, with suppliers saying most of their stock at hand had been booked previously and they have limited spot supply for the remainder of the first quarter.

Fastmarkets’ weekly price assessment for lithium carbonate, 99.5% Li2CO3 min, battery grade, spot price range exw domestic China was 65,000-70,000 yuan ($10,046-10,819) per tonne on Thursday February 4, up 40.6% from 45,000-51,000 yuan per tonne on February 6, 2020.

What to read next
On September 25, the discontinuation was postponed from the originally scheduled final publication to take into account the needs of market participants that still had physical contracts linked to the lithium contract assessments in place. The affected prices are:• MB-LI-0031Lithium hydroxide monohydrate LiOH.H2O 56.5% LiOH min, battery grade, contract price cif China, Japan & Korea• MB-LI-0027Lithium carbonate 99.5% Li2CO3 min, battery […]
The publication of Fastmarkets’ Shanghai copper premiums on Monday December 23 were delayed because of a reporter error. Fastmarkets’ pricing database has been updated.
China's tightened export controls on gallium and germanium formalize existing restrictions, heightening supply concerns amid ongoing geopolitical tensions.
Fastmarkets confirms it will discontinue its lithium contract assessments after their final publication date of Tuesday, December 24.
The publication of Fastmarkets’ MB-ALU-0001 Alumina metallurgical grade, exw China, yuan/tonne for Thursday December 12 was delayed because of a reporter error. Fastmarkets’ pricing database has been updated.
Get the key takeaways from our recent webinar on the global outlook for the battery raw materials (BRM) market in 2025.