China discovers a 'mega deposit' of 490 million tons of lithium ore

China has confirmed a huge lithium ore discovery in central Hunan – about 540 million short tons of lithium-bearing rock in Linwu County.

Officials say the discovery could anchor battery and materials supply in the region. The find sits in the Jijiaoshan mining area of Chenzhou.

Hunan’s natural resources department reports a large lithium deposit at Jijiaoshan with about 1.44 million short tons of lithium oxide.

The ore type is altered granite-type – a hard rock where lithium forms in chemically changed granite, and it contains rubidium, tungsten, and tin.

The work was led by Xu Yiming, a professor at the Institute of Hunan Province. His research focuses on geological exploration for critical minerals.

“The newly identified reserve will provide strategic resource security for the new-energy industry in Chenzhou,” said Yiming. The statement points to local plans for upstream supply feeding nearby cathode and battery plants.

Lithium resources are reported using lithium oxide, a compound that lets geologists standardize how much lithium is present.

The associated elements point to a polymetallic system that can spread costs across several valuable products.

Why this lithium ore matters

China’s reserves now account for about 16.5 percent of the global total, placing it second worldwide after Chile. New domestic ore reduces the gap between mining at home and processing at scale.

China also dominates midstream processing, the chemical conversion that turns ore into battery grade chemicals. Its global share sits around 70 to 75 percent.

Regional industry stands to gain from shorter haul distances and faster material cycles. That can improve quality control because feedstock sources are closer to refineries.

Companies planning future cathode and anode projects often weigh ore security alongside power prices. This ore body gives planners a clearer path to long term contracts.

Hard rock versus brine

Many hard rock deposits host minerals such as spodumene – a lithium rich mineral commonly mined from pegmatites. Hard rock routes typically involve crushing, concentration, and chemical conversion.

Brine projects pump salty groundwater to the surface, then rely on months of evaporation before processing. That schedule dependence is explained clearly in a recent report. 

Hard rock mining allows steadier schedules because plants run regardless of rainfall. That matters for factories that plan around fixed monthly deliveries.

Refiners prize predictable feed, and refining, chemical upgrading that produces battery grade carbonate or hydroxide, works best with consistent input. Hard rock operations can adjust mine output to match contracts.

How scientists estimate the size

Geologists start by drilling, then build a geologic model that estimates tonnage and grade. Sampling and lab assays show how lithium varies across the ore body.

Those estimates are first reported as resources, an in ground estimate that is not yet proven mineable. With more data and engineering, parts of a resource can advance toward reserves.

Independent engineers run pit designs and simulate plant performance to predict throughput and recovery. The results guide decisions on equipment size and product choices.

A region with roads, power, and water often moves faster than a remote site. Jijiaoshan sits near existing industrial hubs, which can shorten lead times if approvals arrive promptly.

Risks and unknowns at this stage

Metallurgy is critical because different host minerals need different processes. Lithium in mica rich rocks can require roasting or leaching steps that raise costs and complexity.

Developers will weigh the capital needs for mine, plant, and tailings, engineered storage for finely ground waste rock. Designs that recycle water and control dust reduce community impacts.

Pricing remains volatile as electric vehicle demand ebbs and flows through the business cycle. New supply can help stabilize prices, but timing and product mix still matter.

Local officials will balance jobs and revenues with environmental safeguards and land use. Transparent reporting and steady monitoring build trust as construction and mining begin.

Global supply and pricing

Fresh supply can calm price spikes that stem from sudden demand surges. Actual impact depends on how quickly engineers move from resource totals to permitted, financed production.

Because China already leads in battery chemical plants, more ore at home can reinforce that lead. Integrated chains from pit to plant often reduce losses and delays.

Environmental practice will be a central question for local communities as drilling and haul roads expand. Water recycling, tailings design, and power choices will shape the footprint.

Investors will watch grade control, metallurgy, and product mix to see whether lithium carbonate or hydroxide production offers better margins at scale. Associated minerals can change project economics as recovery circuits improve.

Primary supply growth does not make recycling less important. It can buy time for builders to scale plants that recover lithium from used batteries.

A stable feed of mined chemicals can help recyclers fine tune processes and qualify materials for new cells. Recycling will keep growing as packs reach retirement.

Lithium ore’s global impact

Resource numbers are the starting line, not the finish. Developers must map reserves, complete feasibility studies, secure permits, and build processing trains.

Geologists will refine the three dimensional model of the ore body. Better models guide selective mining and help maintain head grades over time.

Global suppliers may respond by advancing projects in Australia, South America, and North America. More competitors entering production can increase resilience across the market.

Regional leaders will likely align transport links, power supply, and workforce training with phased mine development. Clear timelines help downstream plants plan their expansion runs.

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