Lithium ore Photo: VCG

China's Ministry of Natural Resources announced on Wednesday that the measured and indicated lithium reserves in the country have increased significantly, rising to account for 16.5 percent of all global resources from the previous 6 percent.

This leap positions China as the second-largest holder of lithium resources worldwide, only after Chile. The breakthrough resulted from significant discoveries along a 2,800-kilometer West Kunlun-Songpan-Ganzi lithium belt in the country's west.

Media reports show that the lithium belt alone has cumulative proven reserves of more than 6.5 million tons, with resource potential exceeding 30 million tons, greatly enriching the variety of lithium ores in China.

Additionally, advances in lithium extraction from salt lakes and lithium mica have contributed to the increase in determined reserves, media reports said. China's newly identified salt lake lithium resources amount to more than 14 million tons.

Extracting lithium from salt lake brine, known for its low cost and reduced environmental impact, resulted in substantial lithium resource growth in the Qinghai-Tibet Plateau. The development positions China as the world's third-largest salt lake lithium resource hub, following the lithium triangle in South America and the US western region.

Furthermore, with the technological hurdles of lithium extraction from mica now resolved, the efficiency and economic viability of utilizing lithium mica resources have significantly improved, leading to an additional 10 million tons of proven resources.

China has overcome technological hurdles in extracting lithium from mica, resolving issues like high extraction costs and complex processing requirements. These innovations have enhanced resource exploration efficiency and economic feasibility, opening up new opportunities for lithium exploration.

Analysts said that the tech advancements have alleviated China's tight lithium supply, and helped to stabilize the global lithium market.

China has achieved large-scale growth in lithium reserves through breakthroughs and advancements in salt lake and mica lithium extraction technologies, which have elevated the country to being the world's second-largest holder of proven reserves, Lin Boqiang, director of the China Center for Energy Economics Research at Xiamen University, told the Global Times on Wednesday.

Lin said that China's competitiveness in the lithium battery industry is bolstered by its complete industrial chains, which allow the production of high-quality batteries at lower costs, ensuring greater competitiveness in the global market.

A significant portion of global battery production and capacity is concentrated in China, which accelerates the iteration and advancement of related technologies, Lin said.

China plays a crucial role in lithium extracting technology and high-end lithium battery production. Official data show that China's lithium-ion battery industry achieved robust growth between January and October 2024, with national battery production hitting 890 gigawatt-hours, up 16 percent year-on-year.

During the same period, more than 200 gigawatt-hours of energy storage lithium-ion batteries were produced, and the country's battery installations for new energy vehicles reached approximately 405 gigawatt-hours.