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Net profit in 2021 at Ganfeng Lithium, a China-based lithium supplier to Tesla, is expected to soar by as much as 437% from a year earlier,  the company said in a stock filing at the Shenzhen Stock Exchange on Monday.

Net profit is expected to increase to between 4.8 billion yuan to 5.5 billion yuan, or $859 million, from 1 billion yuan in 2020, the company said. The increase would range from a 368% to 437% rise from a year earlier,  Ganfeng said.

Demand for lithium salt in connection with the rapid growth of the electric vehicle and energy storage industries helped Ganfeng’s business, along with a new battery project and gains in the value of financial assets held by Ganfeng, the company said.

China has emerged as the world-leading market for EVs. Sales in the country last year rose to 3.3 million units from 1.3 million in 2020; they will increase to 5.8 million in 2022 and account for 60% of the global total, according to newsletter ZoZo Go.

Ganfeng said on Nov. 1 it had signed a three-year agreement to supply battery-grade lithium to Tesla starting Jan. 2022. Tesla operates a factory in Shanghai that accounts for about half of its global production, according to a Reuters estimate. Ganfeng has mineral resources in Argentina, Australia, China and Mexico. Besides BMW, its other partners include BMW.

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Ganfeng Chairman Li Liangbin holds a fortune worth $5.5 billion on the Forbes Real-Time Billionaires list today; vice chairman Wang Xiaoshen is worth $2 billion. The China boom in electric vehicles and green energy help increase the number of billionaires in the country on the 2021 Forbes China Rich List published in November (see post here).

Ganfeng’s shares trade in Hong Kong and Shanghai.

See related posts:

Why Biden’s Tax Credit For Union-Built EV’s Would Hurt U.S. Competitiveness

EV Sales At Buffett-Backed BYD Tripled In December, Underscoring Big China Gains

China SUV Leader Says Profit Gained As Much As 26% In 2021

@rflannerychina

Source: Forbes

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