China Uncovers Massive Lithium Deposits

China has announced the discovery of a substantial lithium deposit in the central province of Hunan, which is set to enhance its position in the global electric vehicle battery market. According to reports from state broadcaster CGTN, the new site is estimated to contain around 490 million tons of lithium ore, capable of producing approximately 1.31 million tons of lithium oxide, a critical component for electric vehicle batteries.

The exploration team from the Hunan Institute of Mineral Resource Research has spent several years identifying this lithium resource. Enhanced geological imaging techniques have significantly contributed to this discovery. The ore consists of lithium-bearing granite, which can be crushed to extract lithium oxide through separation processes. This method is considered more straightforward and efficient compared to extracting lithium from brine, which typically involves evaporation in large ponds.

With lithium reserves in China rising to 16.5% in 2025, it now ranks second only to Chile in terms of total reserves. However, China controls over 70% of the global lithium refining capacity, granting it substantial influence over the conversion of lithium ore into battery-grade materials.

The newly identified deposit is likely to bolster China's dominance further. Moreover, ongoing investigations into the Spodumene belt in Tibet, extending approximately 2,800 kilometers, may reveal an additional 30 million tons of lithium, according to estimates.

As the demand for lithium in electric vehicle battery production continues to soar, Western nations are actively seeking to reduce their dependency on Chinese resources for critical raw materials. Recent agreements between the United States and the European Union aim to diversify supply chains for these essential resources.

China's leadership in lithium processing has allowed it to establish a competitive edge in locating and developing mining sites, as well as in extraction technologies. Furthermore, the country remains at the forefront of lithium processing and battery production for the electric vehicle industry.