Approximately 490 million tons of hard-rock lithium ore have been discovered at the Jijiaoshan mine in China’s Hunan Province. This massive reserve will further strengthen the country’s influence in the battery raw material supply chain, where it is already strong. China already holds a dominant position in the global market with its lithium processing and refining capacity, and this new discovery could directly impact global competition.
A new era in the global battery balance
According to state television channel CCTV, the discovery was uncovered thanks to extensive geological exploration and advanced imaging technologies. The lithium ore at the granitic site boasts faster processing compared to brine deposits, lower initial investment costs, and flexible product range. These features make the site not only a large resource but also an economically attractive mining option.
The discovered reserve is not limited to lithium. Other commercially valuable elements such as rubidium, tungsten, and tin are also reported to be present at the site. These byproducts could further increase the economic efficiency of the operation.
With the new field, China’s share of global lithium reserves has risen to 16.5 percent, placing it second only to Chile. However, China’s true strength lies in its ability to convert mined ore into high-purity raw materials suitable for battery use. Currently, more than 70 percent of global lithium refining takes place in China.
The growth in China’s lithium resources isn’t limited to this. Studies in the 2,800-kilometer spodumene belt in the Tibet region indicate a potential additional 30 million tons of lithium reserves. This means the country’s total reserves could grow even further in the coming years.
Lithium is of strategic importance not only for electric vehicles but also in many areas, from energy storage systems to communications technologies and the defense industry. China currently hosts more than 60 percent of the global electric vehicle fleet. According to estimates, domestic lithium demand is expected to double by 2030. With these developments, China is approaching a position where it can single-handedly determine the global balance in terms of lithium production, processing and consumption.
