China, the world's largest producer and consumer of batteries, may soon exploit hidden lithium resources located beneath its battery factories. According to a new study, these lithium resources may stem from ancient volcanic activity in the eastern and southern regions of China, where most of the country's battery factories are situated.
Lithium Resources and Volcanic Activity
The study points out that ancient volcanic activity has produced a type of volcanic soil that has gradually mineralized with lithium. Researchers have found evidence of lithium mineralization in layers of volcanic soil. According to one researcher, "Potential targets for lithium resources of the clay type in southeastern China overlap with lithium battery industrial clusters in eastern and southern China."
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Reducing Dependence on Foreign Lithium
China currently holds between 70 to 80 percent of the global lithium supply chain, but it is not the largest producer of this metal, ranking second after Australia. However, China is a leader in lithium processing, and many other countries have recently become aware of their dependence on China in this industry. If domestic lithium resources are proven, it could reduce China's dependence on foreign lithium while providing more resources for North American and European countries.
Nevertheless, the concentration of newly discovered resources in volcanic soil layers ranges from a few hundred to 1,000 parts per million, which is generally not very attractive for commercialization. Nonetheless, the commercial viability of these resources depends on demand forecasts, and even such low concentrations may become viable if the issue of battery overproduction in China is resolved.
For over a decade, China has heavily invested in renewable energy, including solar panels, wind turbines, and batteries. The country is currently working to have greater oversight over the number of battery producers and to prevent overproduction issues.
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