Mali has commissioned one of the largest lithium mines in Africa with Chinese lithium-producing giant Ganfeng Lithium. The Goulamina lithium mine in Mali is expected to produce 500,000 tons of spodumene concentrate annually.
While the lithium mining project is 65 per cent owned by the Chinese company Ganfeng Lithium, the Malian government holds 30 per cent of the shares and local investors the remaining five per cent. The framework of the deal is guided by the mining code instigated by the Mali government in 2023, which stipulates definitive domestic ownership and participation targets.
Malian companies are supposed to benefit from at least 51 per cent of the subcontracting contracts, while part of the revenue generated by the mine’s operation will be dedicated to financing local infrastructure projects. This financing is to be particularly focused on energy, transport, and water infrastructure. According to APA news, the mine’s annual revenue is estimated at around 160 million US dollars.
The Goulamina mine in West Africa is estimated to have an estimated lifespan of 23 years. Initially, Leo Lithium was to co-own the mine, but the Australian company sold its remaining interest in the Goulamina Lithium Project to its former joint venture partner, Ganfeng Lithium.
Gangfeng is one of the world’s largest lithium producers. In 2021, materials technology and recycling group Umicore signed a long-term lithium supply agreement with Ganfeng Lithium, beginning in 2022. The agreement has an initial term of five years that can be extended by mutual agreement. According to Umicore, the agreement will “cover a significant part of the future lithium demand in Asia.”
Supplying electric vehicle manufacturers
Ganfeng signed a framework agreement with Tesla in 2021, which lasted for three years, starting in 2022. There are no indications that it will be extended. In 2024, Hydundai entered a framework agreement for the supply of lithium hydroxide with Ganfeng for the following four years. Volkswagen has a 10-year supply deal with Ganfeng signed in 2019.
But the batteries made from Ganfeng supply are not only going towards electric cars. In August 2024, the Chinese lithium giant entered an agreement with Turkish battery manufacturer Yiğit Akü to establish a $500 million joint venture with the goal of producing lithium batteries. At the time, an official Ganfeng announcement cited by international media mentioned batteries for marine and aviation applications, among others.
Ganfeng has also been increasingly investing in in-house battery production for several years. In January 2023, for example, Ganfeng announced its intention to invest 15 billion yuan in two new battery factories to increase its production capacity by 34 GWh to around 100 GWh per year.
Lithium projects in Africa
In 2023, Wang Xiaoshen, president of Ganfeng, told Benchmark Source, “We believe Africa will be the next good opportunity for lithium.” This month, Battery Minerals Africa listed the Goulamina lithium mine in Mali as the sixth-largest lithium project in Africa. The publication listed the two largest as being in Zimbabwe, with the Arcadia Lithium Project and the Bikita Minerals mine. The third and fourth largest lithium projects in Africa are found in DRC, while the fifth largest is listed as the Blesberg project, located in the Northern Cape Province of South Africa.