The Chinese company Ganfeng Lithium lost its concession to build and operate a lithium mine in Sonora, Mexico, the most important project of its kind in the country.
The reason? The company failed to meet the minimum investment from 2017 to 2021, according to the Ministry of Economy.
For the time being, Ganfeng Lithium filed administrative review appeals with the Mexican government.
Called the Sonora Lithium Project, it comprised total lithium resources of 8.82 million tons of lithium carbonate equivalent.
The company operates and has investments in several countries around the world, including Australia, Argentina, Mexico, Ireland and Mali, with different legal frameworks and government policies.
From the perspective of its own risks, Ganfeng Lithium’s business, financial condition and operating results are subject to uncertainties related to the countries in which the company operates or has investments.
The People’s Republic of China has developed long-term political and economic relationships with many of the countries in which the company operates or has investments, and has entered into various economic and technical cooperation treaties, as well as investment, tax and bilateral free trade treaties with such countries.
Ganfeng Lithium
In the event of a material change in political or economic relations between these countries and the People’s Republic of China, the company’s business, financial condition and operating results could be adversely affected.
By its own description, Ganfeng Lithium is the world’s leading green lithium company.
It offers five major categories of more than 40 lithium compounds and lithium metal products, making the company one of the lithium product manufacturers with the most comprehensive product offering.
Ganfeng Lithium started as an intermediate manufacturer of lithium compounds and lithium metals and has successfully expanded both upstream and downstream.
At the same time, the company has developed a vertically integrated business model, including lithium resource development, lithium compound and lithium metal processing, as well as lithium battery production and comprehensive recycling of retired lithium batteries, which are important links in the industrial green chain.