Key facts
- Sinopec completed a pilot trial of its proprietary lithium extraction technology.
- The technology utilizes produced water from the Yuanba gas field.
- The process is named "rapid adsorption and desorption".
- Industrial-grade lithium carbonate was produced.
- Sinopec states the technology can reduce production costs by over 35%.
Chinese state-owned oil and chemicals company Sinopec has completed a pilot trial of its proprietary lithium extraction technology, utilizing produced water from the Yuanba gas field. The technology, known as the "rapid adsorption and desorption" process, was developed by Sinopec's engineering and construction subsidiary and successfully produced industrial-grade lithium carbonate.
Sinopec claims this new method can cut production costs by over 35% compared to conventional lithium extraction processes, while also shortening the processing route and improving efficiency. This development is seen as a significant technological breakthrough, integrating oil and gas production with new energy resources and potentially providing an additional source of lithium supply from oilfield-produced water.
This move comes as global lithium demand is projected to reach 3.5 million tons of lithium carbonate equivalent by 2036, driven by the electric vehicle and energy storage sectors. China, the world's largest lithium consumer, relies heavily on imports for its supply, making domestic supply security a key focus. Sinopec's diversification into new energy sectors aligns with government decarbonization targets and the global energy transition.
Sinopec has also recently engaged in strategic partnerships, including an agreement with NEV manufacturer BYD to develop fast-charging infrastructure and an investment in CATL to support the expansion of EV battery exchange stations.