China's Ganfeng Files for IPO in the Mass Scramble for Lithium - Seite 2
According to insiders familiar with the deal's unfolding, Ganfeng could overshoot their target by up to half a billion dollars. The company plans to use the money to finance acquisitions, further exploration of lithium reserves and expansion of capacity to meet growing demand of the metal.
The deal is being spearheaded by financer Citi Group.
Ganfeng, which is headquartered in Shanghai, is the third largest producer of lithium behind American company Albemarle and SQM of Chile. The company also produces batteries and recycles lithium from discarded gadgets.
Aside from exploration activities, Ganfeng is contributing to the EV revolution by developing solid state batteries in which the liquid electrolyte is replaced with solid lithium metal. These batteries promise faster charging times and higher driving range, and could also be safer than conventional li-ion batteries.
Ganfeng could use some of the proceeds from the IPO to fund Lithium Americas, with whom the company has a $125 million line of credit and is developing a project in Argentina. Creating lithium production is their priority.
CREATING CONFIDENCE IN LITHIUM PLAYS
NRG Metals, a player focused on the exploration and potential development of lithium brine assets in Argentina, has recently attracted a Chinese battery material producer, Chemphys Chengdu. Through closing on a $1.4 million private placement to fund ongoing exploration activities in Argentina, Chemphys became the largest single shareholder of NRG. In addition, NRG and Chempys agreed to an off-take agreement on all potential future lithium production at the Hombre Muerto North project.
NRG Metals has two projects, with the most significant project being the "Hombre Muerto North Project" or HMNP. HMNP is located in the Salta and Catamarca provinces within the Hombre Muerto Salar, the location of FMC's lithium producing Fenix Mine. The project comprises a total property package of over 3,000 hectares encompassing six concessions. NRG has two drill rigs working on this project right now. One is drilling a core hole to test for lithium grade. The second is drilling a large diameter pumping well hole to test for flow, if warranted by results. And results from the first 100 meters of the core hole are in, and quite interesting. The first 100 meters averaged 905 miligrams per liter lithium, with a low magnesium ( a contaminant that needs to be removed ) to lithium ratio. The NRG lithium team, well experienced in the exploration and development to production of lithium projects in Argentina, are very excited by the initial results.