The first phase of the project in Mali is expected to yield over 500,000 tons of the mineral annually

Chinese company Ganfeng Lithium has commenced operations at the Goulamina lithium mine in Mali, the South China Morning Post reported on Thursday. The mineral is essential for electric vehicle batteries and electronics.

Production at the site, located in the Bougouni region, began this month and is set to yield 506,000 tonnes of lithium annually during its first phase, with plans to double capacity in subsequent phases.

The Goulamina mine is among the world's largest lithium deposits, and is projected to yield 15.6 million tonnes of spodumene concentrate over a 23-year lifespan.

Mali's transitional president, Assimi Goita, present at the plant's inauguration, emphasized the importance of the Sino-Malian partnership, describing it as "strategic and sincere." He highlighted the mine's role in advancing the exploitation of Mali's natural resources. Chinese ambassador to Mali, Chen Zhihong, echoed these sentiments, calling the project a "new example of win-win cooperation."

This development comes despite challenges, including security concerns and the implementation of a new mining code by Mali's government. The revised code increases state ownership in mining projects, raising Mali's stake in the Goulamina project from 20% to 35%. Ganfeng Lithium has agreed to the terms, aligning with the government's efforts to boost mining revenue.

Earlier this year, Ganfeng acquired a 40% stake in the Goulamina mine from Australia's Leo Lithium for $342.7 million. Leo Lithium cited operational risks and the impact of the new mining code as reasons for the sale.

The commencement of production at Goulamina is expected to generate significant revenue for Mali, estimated at $191 million annually. This aligns with the government's objective to capitalize on the growing demand for lithium, driven by the global shift towards renewable energy and electric vehicles.