Ganfeng Lithium's stock price plummeted 5.43% during intraday trading on Tuesday, reflecting a sharp decline in investor sentiment.

The sell-off was triggered by the company's final investment decision on the Mt Marion lithium mine project, a joint venture with Australian mining company Mineral Resources. The project involves building a flotation plant and developing underground mining operations, with an estimated total capital investment of $490 million to be allocated across fiscal years 2027 and 2028.

Market participants expressed concern that this substantial capital expenditure could increase the company's financial burden, especially amid an uncertain outlook for lithium prices. The broader lithium sector also faced selling pressure during the session, highlighting persistent headwinds from supply-side expansion and recent corrections in lithium carbonate prices from multi-year highs.