The company primarily produces potash but derives around one-third of its revenue from lithium extracted from salt lakes in Qinghai.

Zijin, a global powerhouse in copper and gold, is advancing its push into the lithium sector with the potential acquisition of Zangge Mining.

Zijin Mining Group Co., one of China’s most acquisitive miners, says it’s in discussions to buy shares and potentially to take over Zangge Mining Co. Ltd. a lithium and potash producer.

Lithium’s crash since late-2022 — prices have slumped nearly 90% — has hammered listed producers and fueled a spurt of dealmaking. Rio Tinto Group, the world’s second-biggest mining group, last year agreed to buy Arcadium Lithium Plc for $6.7 billion.