Business · Energy & Commodities · 5 hrs ago
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.
A study suggests lithium deposits could lie beneath battery factory clusters in eastern and southern China.
The deposits may have formed when ancient volcanic clay became mineralized with lithium.
Researchers have found evidence of lithium mineralization in clay layers of volcanic rock, but the resources’ commercial viability has not been proven.
The studied clay formations contain between a few hundred and 1,000 parts per million of lithium.
If viable, local supplies could reduce transport costs and supply-chain risks, according to a researcher quoted in the article.
- Who
- Researchers say potential lithium deposits may be beneath China’s battery factory clusters.
- What
- A study suggests ancient volcanic clay in China could contain untapped lithium resources. Their commercial viability remains unproven.
- When
- The study was described as recent; a publication date for the study is not stated.
- Where
- East and South China, where many of the country’s battery factories are located.
- Why
- If developed, local lithium supplies could reduce transport costs and supply-chain risks.
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- Potential deposit locations
- East and South China
- Lithium concentration
- A few hundred to 1,000 parts per million
- China’s global lithium supply-chain share
- Between 70% and 80%
- China’s lithium production rank
- Second, after Australia
What people are saying
Local supplies could significantly reduce transport costs and supply-chain risks
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