China's Ganfeng Files for IPO in the Mass Scramble for Lithium
LOS ANGELES, May 24, 2018 /PRNewswire/ --
USA News Group - Chinese company Ganfeng Lithium, the country's largest producer of battery raw material, threw its hat in the ring recently with the announcement that it is filing for an Initial Public Offering.
Lithium demand is already a driving force for companies hoping to tap greater supplies including LSC Lithium Corp. (TSX-V:LSC) (OTC:LSSCF), Critical Elements Corporation (TSX-V:CRE) (OTC:CRECF), Lithium Americas Corp. (NYSE:LAC) (TSX:LAC) and NRG Metals Inc. (TSX-V:NGZ) (OTC:NRGMF).
The EV revolution is already proving to be an unstoppable force that will completely revolutionize the transport industry. With that transformation, lithium is emerging to take the place of petroleum as the king of the energy industry.
Forecasters are already predicting that the increase in demand by automakers, power storage systems and new high tech applications will create a potential significant shortfall and major players are gearing up.
Leading lithium companies are seeing their share values also increase based on the new demand and outlook for metal including LSC Lithium Corp. (TSXV: LSC.V) (OTC:LSSCF), Critical Elements (TSX-V: CRE.V) (OTC:CRECF), and Lithium Americas Corp. (NYSE:LAC) (TSX:LAC.TO).
NRG Metals Inc. (TSX-V: NGZ) (OTCMKTS: NRGMF) is one of the junior companies making significant exploration progress in South America. The Company just released drill results from it's strategically located Hombre Muerto North Lithium Project, and preliminary test results are exciting. In addition, NRG is also drilling a 29,000 hectare project called the Salar Escondido. They presently have three drill rigs turning, two at Hombre Muerto, and one at Salar Escondido.
GANGFENG LITHIUM A HUGE PLAYER
The scramble for lithium resources, which is already in full swing, is definitely a race to control the future and China seems to have taken an early leap ahead of the rest of the pack. Chinese company Ganfeng Lithium, the country's largest producer of battery raw material, is seeking to raise $1 billion worth of capital through an initial public offering on the Hong Kong Stock Exchange.
The company is among a host of miners looking to quickly identify lithium projects that can be developed into production, in order to meet growing demand from electric car makers. German carmaker BMW is also reported to be in the process of signing a lucrative five to ten-year supply deal for lithium and cobalt as it looks to change its fleet into hybrid and electric cars.