Business · Energy & Commodities · 5 hrs ago

Study suggests lithium deposits may lie beneath China’s battery factories

Study suggests lithium deposits may lie beneath China’s battery factories

A study suggests lithium-bearing clay may lie beneath factory regions in East and South China.

The proposed deposits formed from ancient volcanic activity, and researchers have found signs of lithium in clay layers of volcanic rock.

China dominates lithium processing and controls a large share of the global lithium supply chain, though Australia produces more of the metal.

If the deposits can be developed, local lithium could cut transport costs and supply risks for Chinese battery makers.

But the lithium concentration is low, and commercial viability remains unproven.

China also has more battery-making capacity than current demand, which could make new supplies less useful for now.

The country plans to become a leading producer of solid-state batteries within five years, but the deposits still need to be assessed.

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What people are saying

Duan ZhengChinese Academy of Sciences researcher
Local supplies could significantly reduce transport costs and supply-chain risks
via OilPrice
China’s Ministry of Industry and Information TechnologyGovernment ministry
Over the next five years, the new-type battery industry is at a critical window for technological upgrading, and we must seize the strategic opportunities presented by technological and industrial innovation
via OilPrice