Ganfeng Lithium's stock plummeted 5.00% during intraday trading on Thursday, extending recent weakness in the lithium sector.
The decline comes as the market expresses concern over the company's substantial capital investment in the Mt Marion lithium mine project. Ganfeng Lithium and its joint venture partner recently made a final investment decision to construct a flotation plant and develop underground mining, with total capital investment estimated at USD 490 million spread across fiscal years 2027 and 2028.
Additionally, lithium carbonate futures have continued to retreat after hitting a near three-year high in mid-May, now falling below the RMB 180,000/tonne level. The sustained price decline has suppressed valuations across the lithium sector, contributing to broad weakness among lithium-related stocks.
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