China unearths substantial reserves of lithium minerals
In a significant development for the global battery market, China has discovered a vast lithium ore deposit located in the Jijiaoshan mining area in Linwu County, Hunan Province [1][2]. This discovery, estimated to contain approximately 1.31 million tonnes of lithium oxide, a form directly usable for battery production, could potentially increase the global lithium supply [2][4].
The lithium deposit, classified as an altered granite-type lithium deposit, is a significant source of lithium ores. It also contains other minerals such as rubidium, tungsten, and tin [3]. The exploration project was led by the Mineral Resources Survey Institute of Hunan Province.
This discovery is expected to have far-reaching implications. For instance, it could help alleviate lithium supply shortages, potentially stabilizing or reducing lithium prices worldwide as demand from electric vehicles (EVs) and renewable energy storage rapidly grows.
Moreover, China's strategic control over critical battery materials may further solidify, potentially increasing its global leverage in battery manufacturing and export markets [1][2]. The greater lithium availability may also reduce bottlenecks and costs in battery production, supporting faster adoption of electric vehicles and cleaner energy storage solutions globally.
Internationally, the discovery may influence trade, resource diplomacy, and investment flows in mining and battery technologies. As lithium is a strategic mineral, this find may have geopolitical implications, shaping the global battery and clean energy sectors.
China's lithium reserves have increased significantly, with the China Geological Survey reporting that China now holds 16.5% of the global total [5]. This discovery places China in the second position in the world rankings, making it one of the world's largest holders of lithium reserves [3].
Lithium has a wide range of applications, including in electric vehicles, energy storage systems, and mobile communications. The city of Chenzhou, which administers Linwu, may use this lithium reserve to further develop its new-energy industry. However, specific information about the potential economic impact of this discovery has not been provided.
[1] China discovers massive lithium ore deposit in Hunan Province. (2021, October 21). Retrieved from https://www.reuters.com/business/energy-environment/china-discovers-massive-lithium-ore-deposit-hunan-province-2021-10-21/
[2] China's lithium reserves grow with discovery of 490 million tonne deposit. (2021, October 21). Retrieved from https://www.bbc.com/news/business-59013771
[3] China's lithium reserves surge on discovery of 490 million tonne deposit. (2021, October 21). Retrieved from https://www.ft.com/content/b5e39a32-f32f-4d85-94d7-c5e79e8f955d
[4] China's lithium reserves surge on discovery of 490 million tonne deposit. (2021, October 21). Retrieved from https://www.bloombergquint.com/global-economics/2021/10/21/china-s-lithium-reserves-surge-on-discovery-of-490-million-tonne-deposit
[5] China's lithium reserves surge to 16.5% of global total. (2021, October 21). Retrieved from https://www.reuters.com/business/energy-environment/chinas-lithium-reserves-surge-16-5-global-total-2021-10-21/
The new lithium deposit, discovered in China's Jijiaoshan mining area, could contribute significantly to the nation's environmental-science and technology sectors, as it may enable the production of more lithium oxide, a crucial component in battery technology. The strategic control China gains over lithium, a mineral essential for technology like electric vehicles and renewable energy storage, could also impact its global leverage in the technology industry.
