- Tianqi Lithium announced a net income of CNY85.8 million for H1 2021, recovering from a loss of CNY696.6 million last year.
- The company has posted its first profit figures in over 2 years.
- Tianqi and IGO have formed a global JV, which owns a 51% stake in the hard rock lithium mine at Greenbushes and a 100% interest in the Kwinana-based battery-grade lithium hydroxide plant.
- The venture produced the initial batch of lithium hydroxide at the Kwinana plant and plans to ramp up the operations at the plant by the end of 2022.
China-based Tianqi Lithium, the subsidiary of the behemoth Chengdu Tianqi Industry Group, posted its first profit results in over 2 years. Tianqi Lithium is the world’s leading producer of hard-rock lithium.
The recovery in lithium prices underpins and supports the business segment as the demand for lithium intensifies in the Chinese and the global markets. The demand for lithium has been surging thanks to a shift to electric mobility and clean energy.
The Shenzhen stock exchange-listed lithium player announced a net income of CNY85.8 million for H1 2021, recovering from a loss of CNY696.6 million last year.
The June quarter recorded a profit of over CNY333.7 million against CNY247.9 million loss in the first quarter of 2021. The profit figures are the first in over 2 years and the best since 2018. The financial numbers have been dismal due to a weak lithium price environment in 2019 and early 2020 as the critical battery metal faced a major supply glut globally. Lithium prices have almost tripled in the last 12 months.
Source: © Malpetr | Megapixl.com
A stronger price environment and anticipations of a promising future has aided lithium prices. In early August, the US, which under Joe Biden’s Presidency took a U-turn on the Paris accord, announced that the country wanted that electric vehicles to account for half of its new auto fleet by 2030.
Tianqi and IGO: New Global partners
On 5 July 2021, the company had announced the completion of the transaction with the ASX player, IGO Limited (ASX:IGO). As per the transaction, the two partners have floated a new global venture, Tianqi Lithium Energy Australia Pty Ltd (TLEA) in which, Tianqi would own 51% while the remaining 49% stake would be held by IGO.
The global venture would own a 51% stake in one of the largest and highest-grade hard rock lithium mines at Greenbushes and a 100% interest in the Kwinana-based fully automated battery-grade lithium hydroxide plant. The lithium hydroxide plant has a nameplate capacity of 48 ktpa of battery-grade Li(OH)2.
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The venture produced the initial batch of lithium hydroxide at the Kwinana plant and plans to ramp up the operations at the plant by the end of 2022.