China becomes 2nd-largest EV battery power with 30-million-ton lithium

China lithium reserves to 30 million tons, its position in the electric vehicle and renewable energy sectors improved

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China has significantly increased its lithium reserves, positioning itself as the world’s second-largest holder of the critical metal for electric vehicle (EV) batteries and renewable energy technology.

According to state news agency Xinhua, China’s global lithium share has risen from 6% to 16.5%, surpassing countries like Australia, Argentina, and Bolivia. The only nation ahead of China in lithium reserves is Chile.

This surge in reserves is attributed to new discoveries and advanced extraction technologies that allow for more efficient retrieval of lithium from various mineral sources.

A major discovery was made in Tibet, where a 1,740-mile spodumene belt is estimated to contain over 6.5 million tons of lithium, with some projections suggesting the total could reach up to 30 million tons. Additionally, salt lakes on the Tibetan Plateau are expected to hold over 14 million tons of lithium, making it the third-largest global deposit of its kind.

China’s advancements in extraction technologies have also played a key role. Researchers have made significant strides in processing lepidolite, a mineral previously challenging to extract due to its high costs and technical difficulties.

This breakthrough is expected to unlock an additional 10 million tons of lithium in Jiangxi, with further prospects in Hunan and Inner Mongolia.

The discovery of these new lithium reserves comes as China continues to expand its new energy sector, driven by the demand for EVs and electronic devices.

In 2022, China accounted for 76% of global lithium-ion battery production capacity. The country's increasing lithium reserves are expected to reduce its reliance on imports, which had previously driven up production costs.

China is also investing in lithium extraction outside its borders.

In Mali, the country is developing one of the world’s largest untapped lithium reserves, with an ambitious goal of producing 506,000 tons annually, with plans to double output in the next phase, despite challenges posed by security concerns and local mining regulations.

These developments, alongside China’s continued innovation in extraction methods, are poised to help address the global strain on lithium supplies, ensuring a more stable market for the future.