After reporting the start of production from the first phase of its lithium hydroxide plant in Kwinana, Western Australia, Tianqi Lithium Corp. said it would delay plans for the A$300 million second stage that was slated to double production to 48,000 tonnes per year, The Australian Financial Review reported Sept. 10.
Instead, the company plans to focus on commissioning and completing the first stage by the end of October, indicating it would aim to ramp up output in line with global demand. However, the company said it is confident about the lithium industry's long-term future.
The company posted a first half net profit of 193.4 million Chinese yuan, slumping 85.2% from a year ago due to lower lithium prices and higher financial costs.
On Sept. 4, Moody's downgraded its corporate family rating on Tianqi Lithium to Ba3 from Ba2, citing high leverage and weak capital structure outlook until the next year.
