China Expands Lithium Reserves, Strengthening Global Position

China's lithium reserves have grown from 6% to 16.5% of the global total, positioning the country as the second-largest holder of lithium reserves. This increase highlights China’s efforts to reduce reliance on imports and bolster its domestic supply.

As the world’s largest consumer of lithium, particularly for battery production, China remains heavily reliant on imports. However, the country has ramped up efforts to secure its domestic supply by exploring and developing new resources. This includes the discovery of the 2,800km spodumene mine in Tibet’s Xikunsong-Pan-Ganzi region, as well as several lithium-enriched salt lakes on the Qinghai-Tibet Plateau, according to Xinhua. With these reserves, China now holds the third-largest lithium resources in salt lakes globally, trailing only the lithium triangle in South America and Western America's lithium reserves. 

As of Jan.8, the most actively traded lithium carbonate contract on the Guangzhou Futures Exchange was priced at US$10,559.91 per ton, reflecting a 0.4% weekly increase.

Lithium in Mexico

In Mexico, most of the lithium reserves are found in hard-to-extract clay deposits, which are expensive and difficult to access. Fernando Alanis, Former President, CAMIMEX, says that Mexico’s lithium has a concentration of only 0.001%/t, requiring large investments and energy to bring it to a battery percentage (30%).

Authorities have decided to nationalize the metal and suspend projects, such as the Sonora Lithium project, but no timeline has been established for the start of lithium production. However, some plans are on the pipeline. Víctor Rodríguez, CEO, PEMEX, says that lithium-related projects will be developed in collaboration with CFE, employing a model that integrates social and private collaborations.

Some key obstacles are hindering the growth of Mexico's lithium industry, including  limited public funding and the minimal involvement of the private sector in the country's lithium supply chain, says Óscar Ocampo, Energy and Environment Coordinator, IMCO. Despite these challenges, President Claudia Sheinbaum says that lithium production will begin under her administration.