Chinese lithium producer Ganfeng Lithium said a long-running investigation into suspected insider trading has entered a new phase, after authorities transferred the case to prosecutors for review, according to a company filing released on Monday.
Ganfeng said it had received formal notification that the case, originally initiated by police in Yichun, Jiangxi province, had been handed over to the local procuratorate on suspicion of insider trading.
See also: China Expects Sharp Drop in Lithium Battery Demand in Early 2026, Industry Group Says
The company added that it had already completed rectification measures related to the matter in 2024 and paid the required penalties, noting that its business operations remain normal and unaffected.
The case stems from trading activity involving shares of Jiangxi Special Electric Motor, also known as Jiangte Motor, during August 2020. At the time, Ganfeng had entered into an agreement to acquire a controlling stake in the company in a deal aimed at preventing Jiangte Motor from being delisted after recording losses for two consecutive years. The acquisition ultimately did not proceed.
See also: LG Energy Solution Cancels Battery Supply Deal With Freudenberg as Contract Losses Mount
According to regulatory findings, Ganfeng traded Jiangte Motor shares during a period considered sensitive due to undisclosed information related to the proposed transaction, generating profits of about 1.1 million yuan ($157,810). The China Securities Regulatory Commission opened a formal investigation into the matter in January 2022 and later imposed penalties totaling more than 4.4 million yuan, including confiscated gains and fines.
Ganfeng, one of China’s largest lithium producers, operates across the full lithium supply chain, producing more than 40 types of lithium compounds and metallic lithium products used in electric vehicles, energy storage, aerospace and pharmaceutical applications. The company said the ongoing legal process is not expected to affect its production or long-term operations.