By Kate Yuan

(JW Insights) May 31 -- Leading Chinese supplier of lithium battery materials Ganfeng Lithium (赣锋锂业) plans to buy 9.9% stake in Australian miner Leo Lithium, with a total of A$106.11 million ($68.88 million), Ganfeng announced on May 29.

The funds will be used to develop and operate the first phase of the Goulamina spodumene mine project in southern Mali. The pair plan to increase the production capacity of Goulamina Stage 2 to approximately 500,000 tons of lithium spodumene concentrate per year, bringing the total to 1 million tons per year, said Ganfeng.

In addition, they will look at the feasibility of building a joint lithium salt production base in Europe or elsewhere near West Africa.

Ganfeng Lithium stated that this move is to strengthen cooperation with Leo Lithium in the Goulamina project, which can further guarantee the company's demand for lithium resources.

Leo Lithium was founded in 2022 and listed on the Australian Stock Exchange and the Frankfurt Stock Exchange. It focuses on the exploration and production of lithium mine resources in Mali. Goulamina is its primary asset which covers an area of 100 square kilometers.