[News] China Becomes Second-Largest Lithium Holder after New Mine Discovery, Boosting EV Battery Sector

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China may have more bargaining power in the electric vehicle and battery sectors, though in an unexpected way. According to a report from Interesting Engineering, citing Chinese news agency Xinhua, the country has become the world’s second-largest holder of the lithium reserves, as it announced the discovery of a massive spodumene belt in Tibet.

As per the reports, China has nearly tripled its lithium reserves accordingly. The country, previously holding 6% of global lithium reserves, now controls 16.5% of global reserves, surpassing Australia, Argentina, and Bolivia, second only to Chile.

The Interesting Engineering report notes that China recently reported a major lithium reserve increase with a 1,740-mile (2,800 km) spodumene belt in Tibet, which is a hard rock ore that is a vital source of lithium. Initial estimates cited by the report suggest the belt may hold over 6.5 million tons of lithium, potentially up to 30 million tons.

Notably, according to Interesting Engineering, explorations on the Tibetan Plateau revealed salt lakes with over 14 million tons of lithium, the world’s third-largest of its kind.

The discovery of abundant lithium reserves would be a major boost to China amid the rising EV demand. Another Global Times report, citing official data, states that from January to October 2024, China’s lithium-ion battery production grew 16%, reaching 890 gigawatt-hours.

However, according to Xinhua, China has relied heavily on imported lithium, raising production costs and limiting industry growth.

The report from Interesting Engineering notes that China accounted for 76% of global lithium-ion battery production in 2022. Over the past 20 years, China has heavily invested in sourcing and manufacturing as the world’s largest battery consumer, the report adds. For instance, CATL is one of China’s largest lithium-ion battery manufacturers and a global leader in battery manufacturing.

(Photo credit: CATL)