China has become the world’s second-largest holder of lithium reserves, rising from 6% to 16.5% of global totals, following major discoveries in Tibet and Xinjiang. Key sites include a 2,800 km spodumene belt and significant salt lake resources, now the third-largest globally. These developments reduce China’s reliance on imports, strengthen its role in renewable energy and EV markets, and highlight the geopolitical implications of resource extraction in sensitive regions.
- Global Position:
- China now holds the world’s second-largest lithium reserves, rising from 6% to 16.5% of the global total, surpassing its previous rank of sixth. It trails only Chile in reserves.
- The discovery significantly enhances China’s domestic capacity, reducing reliance on imports.
- China is the world’s largest consumer of battery-grade lithium, primarily used in rechargeable batteries, electric vehicles (EVs), and renewable energy storage systems.
- Discovery Sites:
- West Kunlun-Songpan-Ganzi Lithium Belt: A 2,800 km spodumene-type lithium belt spanning Tibet and Xinjiang regions.
- Salt Lake Resources on Tibetan Plateau: Includes the Qinghai-Tibet Plateau, now the third-largest salt lake lithium resource base globally, following South America’s Lithium Triangle and western USA.
- Salt Lake Brine Extraction:
- Notable for its low-cost and environmentally friendly processes, salt lake brine extraction has led to substantial resource growth.
- Positioned to support China’s shift towards sustainable and cost-effective lithium production.
Economic and Strategic Impacts:
- Market Dynamics:
- Enhanced reserves are expected to stabilize the global lithium market and reduce China’s dependence on foreign imports.
- The Guangzhou Futures Exchange shows lithium carbonate prices at 77,420 yuan/ton (~$10,560), reflecting steady demand and market growth.
- Industrial Applications:
- Lithium is crucial for electric vehicles (EVs), renewable energy storage systems, electronics, ceramics, glass, and pharmaceuticals.
Geopolitical and Environmental Context:
- Geopolitical Concerns:
- The discoveries in politically sensitive regions (Tibet and Xinjiang) raise geopolitical and ethical concerns, particularly regarding resource exploitation in occupied territories.
- Environmental Perspective:
- Salt lake extraction offers a lower environmental impact, aligning with global sustainability goals.
Strategic Push by China:
- Beijing has prioritized domestic exploration to reduce its reliance on lithium imports and boost its competitive edge in green technologies and global energy transitions.
This comprehensive strategy positions China as a key player in the global lithium market while advancing its renewable energy and EV ambitions.
Reference: South China Morning Post