Key facts
- China may have significant untapped lithium resources under its battery factories.
- Potential deposits are linked to ancient volcanic activity and mineralization in clay-rich formations.
- Concentrations of lithium in studied formations are between 100-1,000 parts per million.
- China controls 70-80% of the global lithium supply chain but is the second-largest producer.
- China aims to dominate the solid-state battery market within five years.
A new study suggests China may possess significant untapped lithium resources located beneath its battery manufacturing hubs in East and South China. These potential deposits, linked to ancient volcanic activity and mineralization in clay-rich formations, could reduce transport costs and supply-chain risks if proven viable. However, current lithium concentrations are low, and commercial viability depends on demand projections and resolving China's battery overcapacity issues. China already controls 70-80% of the global lithium supply chain and aims to dominate the solid-state battery market within five years.