China’s lithium reserves now second-largest globally
China has surpassed Australia in Lithium Reserves to claim 2nd spot globally.
China has overtaken Australia to secure the position of the world’s second-largest holder of lithium reserves.
This is according to new findings from the Ministry of Natural Resources of China.
The China Geological Survey revealed that the country’s share of global lithium reserves has surged from 6% to 16.5%. Placing it just behind Chile, the current global leader.
Significant discoveries include a spodumene-rich lithium belt stretching 2,800 kilometres across western China, estimated to hold between 6.5 million and 30 million tonnes of lithium. Additionally, large reserves were identified in the salt lakes of the Qinghai-Xizang Plateau.
Industry analysts believe these developments could help China reduce its dependency on imported lithium.
In 2023, China accounted for 65% of global lithium consumption. However, they only contributed 25% of the supply, according to Cameron Hughes, a battery markets analyst at CRU.
“This discovery has the potential to lower China’s reliance on foreign imports, though achieving complete self-sufficiency remains unlikely,” Hughes said in an interview with the ABC.
He added, “Mining operations in the region will require formal applications for exploration and extraction rights. As of now, no claims have been made, so it’s improbable that production will commence before the next decade.”
While the expansion of China’s lithium reserves marks a significant shift, it is not expected to have an immediate effect on Australia’s lithium sector.
Australia continues to export nearly all of its lithium to China for processing and remains competitive in the global market.
“With demand rising rapidly, there’s room for both Australian and Chinese producers to thrive,” Hughes noted.
However, declining lithium prices have introduced some uncertainty. After reaching record highs in 2022, prices fell in 2023 due to oversupply and a slowdown in electric vehicle (EV) sales. Analysts anticipate the market will stabilise by 2025, driven by increased EV adoption, particularly in China.
China’s bolstered reserves may pose long-term challenges for Australian miners if China uses its domestic resources to streamline its lithium supply chain.
For now, both nations are set to remain critical players in the rapidly evolving global lithium industry.