Research On The Sustainable Growth Of Ganfeng Lithium In Terms Of "Whole Industry Chain" Strategy

Under the background of global warming,energy transformation has advanced the conversion of traditional energy sources such as oil and fossil fuels to clean energy,energy transformation,energy change has also become an important influence in the reshaping of the global landscape。Therefore,China actively promote the development of new energy industry,not only promotes economic transformation,but also conducive to enhancing the right to speak and take the initiative in international relations.In the power battery industry,lithium-ion battery with long service life,low pollution and high energy density,it is an important player in green energy.At the same time,the rapid development of the new energy vehicle industry also promoted the lithium-ion battery industry.But the lithium industry also has some problems,such as Chinese companies do not have enough control over resources to lithium mines and manufacturing capabilities;Battery technology accumulation is not mature;The decline in financial subsidies has made market chooses the best companies;Lithium industry competition increased.So,China’s policy proposed to "actively promote the construction of a globally competitive lithium whole industry chain",With the guidance of the policy and the increase of funds,some companies choose to expand to the upstream or downstream of the lithium industry chain,but they also faces challenges.This paper uses literature references combined with case studies to analyze the sustainable growth of Ganfeng’s lithium industry under the whole industry chain strategy.First,analyzing the growth of the lithium industry,empirical studies indicate that it shows a rapid growth trend,at the policy support and demand increase,lithium industry enterprises continue to expand capacity expansion and increase the size of companies,Ganfeng Lithium Company is one of them.Secondly,this paper analyzes the whole industrial chain strategy of Ganfeng Lithium,and sorts out its industrial organization structure and structure time,in order to study the following.Thirdly,Ganfeng Lithium shows too fast growth.Under the high growth,the effectiveness of the whole industry chain strategy is not ideal,because too fast growth of the company will bring fast consumption of resources,and also need to improve business management and matched financial strategy.Fourth,this paper use Higgins sustainable growth model to analyzes the profitability,operating capacity,financing policy,and distribution policy of firms and presents corresponding conclusions.The following conclusions were reached:（1）Ganfeng Lithium’s upstream lithium resources are not released in large quantities and costs cannot be effectively controlled;（2）The midstream industry chain is not complete;（3）Dividend policy and financing strategy need further improvement;（4）As the size of the enterprise expands,the level of enterprise management should be appropriate to the growth.Finally,this paper proposes the following solutions : enhance the efficiency of raw material utilization to achieve industrial cooperation;improve the efficiency of asset operation,optimize financing strategy,and reduce dividend distribution policy.