New discoveries raise China’s lithium reserves to second largest in the world

Recent finds, including a massive deposit in Tibet, will help meet demand for metal, which is key for EV batteries and other technologies

Reading Time:2 minutes

Lithium is key component in electric car batteries. Photo: AFP

Published: 11:00pm, 8 Jan 2025Updated: 11:48pm, 8 Jan 2025

China’s lithium reserves have nearly tripled to make it the world’s second-largest holder of reserves of the key metal for renewable energy technology, state news agency Xinhua reported on Wednesday.

The country now accounts for 16.5 per cent of global reserves, behind only Chile, and has moved ahead of Australia, Argentina and Bolivia, according to the China Geological Survey.

The country was previously thought to have held 6 per cent of the world’s total, but the rise is attributed to the discovery of fresh deposits and new techniques that allow the metal to be extracted from minerals.

Lithium is a key material in the country’s booming new energy sector and is critical for producing electric vehicle batteries and electronics.

Beijing has been keen to prospect for fresh reserves because China is the world’s leading consumer of lithium and needs imports to meet its demand.

“For a long time, the country has had a high dependence on foreign lithium resources, with high volumes of imports. This has driven up production costs and limited the development of related industries,” Xinhua reported.

The emerging industries that rely on it include energy storage systems, communications, medical treatments and nuclear reactor fuel, it added.