30-million-ton lithium discovery makes China world’s second-largest EV battery power

INTERESTING ENGINEERING: China has nearly tripled its lithium reserves, elevating its status to the world’s second-largest holder of this essential metal for renewable energy technology, according to the state news agency Xinhua.

The nation now controls 16.5 percent of global lithium reserves, surpassing Australia, Argentina, and Bolivia, and trails behind just one country - Chile.

Previously estimated to possess 6 percent of the world's lithium reserves, China's significant increase is the result of new deposit discoveries and advanced extraction methods that make it feasible to retrieve metal from various minerals.

China recently announced a substantial increase in its lithium reserves, a 1,740-mile (2,800 km) belt of spodumene located in Tibet, a hard rock ore that is a vital source of lithium. Initial estimates suggest that the spodumene belt alone may contain more than 6.5 million tons of lithium, with potential figures reaching up to a staggering 30 million tons.

Additionally, explorations on the Tibetan Plateau have unveiled salt lakes anticipated to contain over 14 million tonnes of lithium, ranking as the third-largest of its kind globally. These discoveries extend the potential of exploring similar reserves in geologically comparable areas across the neighboring provinces of Qinghai, Sichuan, and Xinjiang.

Innovations in extraction technology play a vital role in expanding China’s capabilities of exploiting newly discovered lithium reserves. Chinese researchers have made significant progress in processing lepidolite, a mineral previously known for its extraction challenges due to high costs and technical difficulties. This breakthrough is expected to unlock an additional 10 million tonnes of lithium in Jiangxi, with prospects for more in Hunan and Inner Mongolia.

Lithium plays an instrumental role in China's rapidly expanding new energy sector. It is a critical component for manufacturing batteries for electric vehicles (EVs) and various electronics.

The country's vast population, rapid economic growth, and escalating demand for EVs have intensified its need for this valuable resource. In 2022 China accounted for 76 percent of the global lithium-ion battery production capacity. China has invested heavily in its sourcing and manufacturing processes over the past two decades as the largest lithium-ion battery consumer.

Historically, China has relied heavily on imported lithium, contributing to increased production costs and stifling the growth of industries dependent on this metal. In response, Beijing has vigorously explored new reserves within its borders. The discovery of significant lithium reserves is anticipated to reduce this dependence and mitigate the economic impact of imports.

Lithium extraction, primarily from hard rock ores and natural brines, poses substantial environmental and energy challenges. However, recent technical advancements are expected to make this process easier and relieve the global strain on supplies for a healthier market environment.

Moreover, Chinese researchers are developing innovative extraction techniques to tap into low-quality brines and seawater, which could revolutionize the industry.

Additionally, China is advancing its mining operations in Mali, one of the world’s largest untapped hard rock lithium reserves.  Despite security challenges, strict mining codes, and supply saturation, the project's ambitious first phase aims to produce 506,000 tons of lithium annually, with plans to double output in the second phase.