China Surges to Second Place in Global Lithium Reserves
China’s share of global lithium reserves has soared from 6% to 16.5%, positioning the nation as the world’s second-largest holder of lithium resources, state media reported on Wednesday.
As the top consumer of lithium, China has long relied on imports to meet its growing demand for the battery metal. However, in recent years, Beijing has intensified efforts to boost domestic exploration to reduce reliance on foreign sources.
Lithium’s Critical Role
Lithium plays a pivotal role in powering the modern world. It is a key component in rechargeable batteries for electronic devices, electric vehicles (EVs), and renewable energy storage systems. Beyond energy applications, it is also used in ceramics, glass, and pharmaceuticals, making it one of the most sought-after minerals globally.
Major Discoveries
Among the newly discovered resources are a massive 2,800-kilometer-long spodumene mine in the Xikunsong-Pan-Ganzi region of Tibet and several lithium-rich salt lakes on the Qinghai-Tibet Plateau, according to Xinhua News Agency.
These findings have significantly enhanced China’s standing in lithium salt lake resources, making it the world’s third-largest holder after South America’s “Lithium Triangle” and western America. Lithium extracted from salt lakes is considered a cost-effective source, further bolstering China’s lithium production potential.
Market Impact
The discoveries come as lithium prices in China show steady growth. The most active lithium carbonate contract on the Guangzhou Futures Exchange reached 77,420 yuan ($10,560) per ton on Wednesday, reflecting a 0.4% week-on-week increase.
With these advancements, China is not only strengthening its domestic lithium supply but also reinforcing its position as a global leader in the transition to renewable energy and electric mobility.
