Jiang Weiping, the founder of major Chinese lithium producer Tianqi Lithium, resigned as chairman after the battery-material producer reported its biggest-ever quarterly loss of more than half a billion dollars.

The man who led Tianqi for more than two decades stepped down on Monday “in order to pass on the leadership of corporate governance to the next generation,” the company said in a statement to the Hong Kong stock exchange. He will be replaced by his daughter, Jiang Anqi.

The elder Jiang was born in 1955, and founded Tianqi in the early 2000s in the southwestern Chinese province of Sichuan. He steered the firm through the transformation of lithium from niche commodity to linchpin of the world’s energy transition, and led Tianqi’s overseas expansions in Australia and Chile.

The resignation comes during a stormy period for Tianqi and its peers after a lithium price boom was quashed by a wave of new supply and a moderation of breakneck growth in the electric-vehicle sector. Prices in China slumped more than 80% in 2023, and have yet to rebound meaningfully so far this year.

Jiang’s company made a net loss of 3.9-billion yuan in the first quarter, from a net profit of 4.88-billion a year earlier. Tianqi’s rival Ganfeng Lithium reported a quarterly loss of 439-million yuan, versus net profit of 2.4-billion yuan a year ago.

The price weakness continues to wreak havoc even on established players like Tianqi and Ganfeng, as the market focuses on working through a backlog of inventory. Tianqi’s shares, which slumped 19% on April 24 when it issued a profit warning, fell 1.6% in Hong Kong on Tuesday. Ganfeng fell 1.9%

Both companies have said they are still committed to acquiring global reserves and ramping up production capacity, in a sign that they plan to grab a larger slice of a market that’s poised to keep expanding along with global growth in lithium-ion batteries.

Jiang Weiping will continue to serve as executive director and will retain some committee positions in Tianqi. His daughter Anqi, who was born in 1987, has been vice chairman for the past two years.