China’s battery factories could be sitting right on top of vast lithium deposits

China's battery production centers could be sitting atop substantial lithium reserves, according to a recent study. The research, conducted by geologists from the Chinese Academy of Geological Sciences, suggests that lithium deposits formed by ancient volcanic activity may be present in southeastern China, an area known for its growing lithium battery industry.

This discovery could help reduce transportation costs and supply-chain risks by providing a local source of lithium, rather than relying on imported materials. The study, published in the East China Geology, highlights the potential of volcanic clay-type lithium deposits in southeastern coastal China, particularly in the Shirenbei Basin of Guangdong province and the Shouchang Basin of Zhejiang province.

These areas are characterized by thick layers of volcanic rock, which are believed to contain clay minerals capable of trapping lithium. The researchers propose that drilling should focus on locations where ring-shaped caldera faults intersect with ancient caldera lake sediments, as these areas are the most favorable for lithium enrichment.

While the development of domestic lithium sources could increase China's supply flexibility and bargaining power, the success of these efforts will depend on successful exploration and commercial production. The study's findings could potentially increase China's lithium supply and reduce its dependence on imported materials, benefiting the country's growing battery industry.