China’s lithium reserves have surged from 6% to 16.5% of global totals, making it the world’s second-largest holder of lithium resources, according to state media reports on Wednesday.
As the world’s largest consumer of lithium, China remains heavily reliant on imports to meet its growing demand. In response, Beijing has intensified domestic exploration efforts in recent years to secure its supply chain for this critical battery metal.
Lithium is a vital component in rechargeable batteries for electronics, electric vehicles, and renewable energy storage. It is also used in ceramics, glass, and pharmaceutical applications.
Among the significant discoveries are a 2,800-km-long spodumene mine in the Xikunsong-Pan-Ganzi region of Tibet and lithium-rich salt lakes on the Qinghai-Tibet Plateau, the state-run Xinhua News Agency reported.
China’s newly discovered salt lakes now rank as the third-largest globally, following the “Lithium Triangle” in South America and deposits in western America. Salt lakes are a cost-effective source of lithium, further enhancing China’s position in the global market.
The most actively traded lithium carbonate futures contract on the Guangzhou Futures Exchange was priced at 77,420 yuan ($10,560) per ton as of Wednesday, reflecting a 0.4% week-on-week increase.
With these discoveries, China is better positioned to reduce its reliance on imports while solidifying its role in the rapidly expanding global lithium market driven by the clean energy transition.
