China discovers huge lithium deposit
China has discovered a large lithium deposit and is planning to exploit it. China's dominance in the market for electric car batteries could continue to grow.
Lithium is required for conventional electric car batteries.
(Image: P5h / Shutterstock.com)
China has discovered a huge deposit of lithium-bearing ore in the central Chinese province of Hunan. This is according to a report by the Chinese state broadcaster CGTN on Tuesday. According to estimates, around 490 million tons of lithium ore could be mined in the area. Around 1.31 million tons of lithium oxide can then be extracted from this, which can be used for the production of batteries for electric cars.
According to the CGTN report, an exploration team from the Institute of Mineral Resources Research in Hunan Province has been working for several years to locate the lithium deposit. Improved geological imaging played a role in this. The ore is lithium-bearing granite rock, which is crushed and the lithium oxide extracted through separation processes. Unlike lithium deposits, which occur in brine and the lithium is extracted by evaporation in large basins, the extraction process from ore is easier to handle. Processing could be faster and more cost-effective. Production volumes could also be better controlled.
China's lithium reserves have risen to 16.5 percent in 2025. Only Chile has larger reserves. However, China controls more than 70 percent of global lithium refining capacities. This gives the country dominance in the conversion of lithium-containing ore into materials that are urgently needed for the battery production of electric cars. The newly discovered deposit could further strengthen this dominance.
Further lithium deposits
China's lithium reserves could increase even further. Chinese engineers are currently investigating the approximately 2800 km long spodumene belt in Tibet for lithium-bearing ore. According to estimates, the suspected deposits there could contain 30 million tons of lithium.
The global demand for lithium for the production of batteries for electric cars is high. Western countries therefore want to free themselves from China's dependence on critical raw materials. The USA and the EU, for example, have concluded an agreement to diversify supply chains for critical raw materials as much as possible.
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However, China's dominance in the processing of lithium-containing materials has further implications. In recent years, the country has gained a head start in locating and developing mining sites as well as in mining technology and separation. In addition, China is a leader in the processing of lithium and in the production of lithium-containing batteries for the electric car industry.
(olb)
