Ganfeng Lithium's stock plummeted 5.25% during intraday trading on Friday, extending recent weakness in its share price.
The decline was driven by multiple negative factors. Prominent investment institution Baillie Gifford & Co recently reduced its holdings in the company by approximately 2.497 million shares. Additionally, the company announced the cancellation of 551,250 stock options under its 2022 incentive plan due to unmet performance targets, and a vice president disclosed plans to reduce personal shareholdings to repay loans.
Industry headwinds also weighed on sentiment. While battery-grade lithium carbonate spot prices have surpassed the RMB 200,000 per tonne threshold, the high prices are suppressing downstream procurement willingness. Analysts note that customers are primarily drawing down existing inventory, and brokerages warn that current price levels could dampen the demand outlook for lithium producers by making some energy storage projects less economically viable.