2024 Energy Metal and Lithium metal Industry In Depth Report ( charter 1)

2024 Energy Metal and Lithium metal Industry In Depth Report ( charter 1)

1、 Reshaping the energy structure and sustained high growth in lithium consumption

1.1 Carbon neutrality reshapes energy demand

Carbon neutrality reshapes energy demand, and the global energy structure will undergo tremendous changes. At the 75th session of the United Nations General Assembly, China made a significant commitment to the global "3060" dual carbon target: achieving carbon peak by 2030 and carbon neutrality by 2060. Not only China, according to the Comprehensive Analysis Report on Nationally Determined Contributions released on the official website of the United Nations Framework Convention on Climate Change, as of November 2021, 164 countries have proposed climate goals of "zero carbon" or "carbon neutrality" and submitted their Nationally Determined Contributions plans, with most countries setting 2050 as the target year for achieving carbon neutrality. Peak carbon emissions and carbon neutrality are a common task for countries around the world, which will drive significant changes in the global energy structure.

Most countries around the world have set their carbon neutrality targets around 2050. According to tracking data from the Energy&Climate Intelligence Unit, as of May 2022, 121 out of 197 countries worldwide have set the goal of carbon neutrality/zero carbon emissions. Among them, 16 countries including the UK, France, Germany, Japan, and South Korea have already legislated, while 29 countries including China and the US are in the legislative stage. 17 countries have made statements and commitments, and 53 countries are in the proposal and discussion stage. Most countries have set their carbon neutrality targets for around 2050.

Lithium is known as the 'white oil' and demand has entered a super cycle. Against the backdrop of global carbon peak and carbon neutrality targets, the new energy industry is rapidly developing. The European energy crisis has strengthened the willingness of non energy countries to reduce their dependence on traditional petrochemical energy. The green energy industry is expected to grow rapidly, driving demand for green power generation, transmission, and consumption. On the power generation and transmission sides, the demand for energy storage is growing rapidly; The explosive demand for new energy vehicles on the user side has driven a significant increase in lithium demand. It can be foreseen that the application scenarios of electrochemical energy represented by lithium battery system will run through the power generation, transmission, and power terminals of the power system. Lithium is known as the "white oil", and demand will usher in a super upward cycle. We are at the starting point of the cycle, and the future space is huge. Lithium is a natural battery metal that is transitioning from small to large metals. Lithium ranks third on the periodic table, with metallic lithium appearing silver white and soft in texture, making it the least dense metal element. Lithium has the advantages of light weight and low standard electrode potential. Lithium batteries have a high voltage, with an average voltage of 3.7V per cell, which is equivalent to the series voltage of 2-4 nickel hydrogen batteries or nickel separator batteries. If the user requires a higher voltage, lithium batteries can be easily and conveniently assembled into a lithium battery pack, improving the voltage level; Lithium batteries have low self discharge and no memory effect. The battery itself has high power bearing capacity, and the lithium batteries selected for electric vehicles can achieve a high response capacity of 15-30 ° C for charging and discharging, facilitating high-intensity starting acceleration on the vehicle. In addition, lithium batteries do not contain toxic substances such as lead, mercury, cadmium, etc., making them environmentally friendly. Therefore, they have been widely used as power carriers in industries such as new energy vehicles, energy storage, and 3C. They are gradually transitioning from small metals to large metals, and the demand for lithium has increased significantly.

The lithium industry chain is divided into three links: upstream, midstream, and downstream. The most upstream link is the mining and selection of lithium mineral resources, which is the first link in the lithium industry value chain and a prominent link that currently restricts the supply of the entire industry chain; The midstream includes lithium salts and deep processing, while the downstream includes end applications such as automobiles. From the perspective of industrial structure, the supply of lithium resources mainly comes from salt lake lithium extraction and ore lithium extraction. The current scale and volume of lithium battery recycling are relatively low, and it is still waiting for the retirement period of new energy vehicle power batteries. The core products extracted from the midstream are lithium carbonate, lithium hydroxide, and lithium chloride, among which lithium carbonate and lithium hydroxide are the core materials for making positive electrodes of power batteries, and lithium chloride can be used to extract and produce metallic lithium. Downstream consumption of lithium can be divided into traditional fields and battery fields. Traditional application fields include glass ceramics, lubricants, lithium metal and alloys, and other organic synthesis industries. Core battery application scenarios include electric vehicles, 3C, and energy storage batteries.

1.2 New energy vehicle production and sales enter a period of high-speed growth on the S-curve

Policy support, technological progress, iterative upgrading of car models by automobile manufacturers, and increased consumer acceptance are all important reasons for the rapid growth of new energy vehicles. Domestic policies continue to support the consumption of new energy vehicles, driven by policies such as purchase subsidies, exemption from purchase tax, and road rights, leading to rapid development of new energy vehicles in China. In the United States, Biden will sign an executive order setting the proportion of zero emission vehicles in new car sales by 2030 at 50%, including battery powered vehicles, plug-in hybrid vehicles, and fuel cell vehicles, and proposing new vehicle emission standards. As of June 2022, the penetration rate of new energy vehicles in the United States was only 6.6%, indicating huge growth potential in the future. In Europe, the EU plans to require a 65% reduction in emissions from new cars and trucks starting from 2030, and to take off and land to zero by 2035. Compared to the previous target of a 50% reduction by 2030, policies are becoming stricter and the electrification process in Europe is accelerating. Traditional car manufacturers are stepping up their electrification process, and new forces in car manufacturing are accelerating their entry. Under the European 2030 initiative to ban the sale of fuel vehicles, BMW plans to have sales of pure electric vehicles more than 10 times that of 2020 by 2025. Mercedes Benz plans to have 130 new energy vehicles by 2025, with pure electric vehicles accounting for over 25% of sales. Audi's goal is even more optimistic, with plans for new energy vehicles to account for over one-third of sales by 2025. Chinese car manufacturers have more aggressive goals. BYD will cease production of fuel vehicles in 2022, GAC and Chery will achieve electrification of all vehicle models by 2025, and FAW and Great Wall will reach 40% and 80% of new energy vehicles respectively by 2025.

China's new energy vehicles are growing rapidly, and the epidemic is suppressing expectations. The annual production and sales may still exceed 6 million vehicles. According to statistics from the China Association of Automobile Manufacturers, China's automobile production and sales showed a year-on-year growth trend in 2021, ending the three-year decline since 2018. Among them, new energy vehicles have become the biggest highlight. In 2021, China's new energy vehicle production was 3.545 million units, with sales of 3.521 million units, an increase of 1.6 times year-on-year. Although the production of battery and vehicle factories has been affected by the epidemic in 2022, new energy vehicles will still maintain a good growth rate. From January to June 2022, the production and sales of new energy vehicles reached 2.661 million and 2.6 million respectively, both increasing by 1.2 times year-on-year; In June, the production and sales of new energy vehicles reached 590000 and 596000 respectively, both increasing by 1.3 times year-on-year. The production and sales of new energy vehicles have reached a new high, continuing to maintain a high-speed growth trend. With the stable production and operation environment of the automotive industry in the second half of the year, new car models are being released one after another, driving consumer enthusiasm. The production and sales growth rate of automobiles in the second half of the year is often higher than that in the first half, and it is expected that the annual production and sales of new energy vehicles will still reach 6 million units.

The increase in industrial penetration rate conforms to the characteristics of an S-shaped curve. From the perspective of industrial economics, the increase in penetration rate exhibits classic nonlinear characteristics, similar to the S-shaped curve of racial growth: when the penetration rate is below 10%, the industry is in the "import period" and belongs to the early stage of development; After the penetration rate reaches the critical point of 10% to 15%, it will enter a period of high-speed growth, also known as the steep stage of the S-shaped growth curve. It will climb strongly and sharply to the top of the S-shaped curve, reaching saturation, and the market share at this time often reaches 90%. A representative example is smartphones. In 2010, the penetration rate of smartphones in China was below 15%. In 2011, it grew rapidly and increased to 30%. In 2014, the penetration rate had already increased to over 80%. However, the speed slowed down and stabilized at over 90% in 2016. It only took three years for the penetration rate of smartphones to increase from 15% to 80%.

The turning point of the S-shaped growth curve has arrived, and the high growth of new energy vehicles in China is sustainable. The penetration rate of new energy vehicles in China was only 5.4% in 2020, reaching 13.4% in 2021, and the cumulative penetration rate from January to June 2022 reached 21.6%, with a single month penetration rate of 23.6% in June. The growth of China's new energy vehicle industry fully conforms to the S-shaped growth curve, and is currently at the inflection point where the S-shaped curve is rapidly rising. In the future, the penetration rate will further accelerate. Considering that the life cycle of smartphones is generally around 3 years, and the life cycle of cars is longer, the replacement cycle of old and new cars is longer than that of smartphones, and the time required to reach the highest penetration rate may be longer. However, there is no doubt that China's new energy vehicle penetration rate has entered an acceleration period, and the production and sales of new energy vehicles are expected to accelerate.

The subsidy policy for overseas new energy vehicles has been increased. While China is vigorously developing new energy vehicles, various countries overseas have provided various subsidies and tax reduction policies to accelerate the shift in demand towards new energy vehicles. The intensity of subsidies is mainly related to vehicle prices and carbon emissions. Low priced vehicles usually receive higher subsidies, while subsidies for hybrid vehicles are usually less than those for pure electric vehicles. France and the Netherlands only provide subsidies for pure electric vehicles without subsidies for hybrid vehicles; Germany, Sweden, Italy, and Spain provide less subsidies for hybrid vehicles than pure electric vehicles, while the UK provides the same subsidies for pure electric vehicles and hybrid vehicles.

The supporting policies for new energy vehicles are being implemented simultaneously. In addition to subsidies for the purchase of new energy vehicles, most countries also provide subsidies for infrastructure such as charging stations and power grids, as well as local incentives for parking and the use of proprietary roads. Most European countries have subsidies for the installation of charging stations in private residences and public areas, with subsidy rates ranging from 50% to 75%. As a local policy, local incentives mainly provide discounts in parking, use of exclusive roads, toll road fees, and other aspects. The German government recently announced that it will continue to provide 5.5 billion euros in funding for electric vehicle charging infrastructure until 2024. The European Commission has announced the "Fit For 55" environmental reduction package plan, requiring member states to accelerate the construction of new energy vehicle infrastructure and ensure that there is one electric vehicle charging station every 60 kilometers on major roads. Meanwhile, the charging infrastructure in the United States is rapidly improving. In February 2022, the Biden administration announced a plan to allocate nearly $5 billion over five years to build thousands of electric vehicle charging stations, with charging facilities every 50 miles on interstate highways.

1.3 The transformation of the power structure has led to an explosion in energy storage demand

Lithium battery energy storage accounts for the majority in the fields of electricity and communication. According to the "Big Data of China's Energy Storage, Two Wheel Vehicle, and Electric Tool Lithium Battery Industry" released by GGII, China's energy storage lithium battery shipments reached 37GWh in 2021, a year-on-year increase of 110%. Among them, power storage accounted for 47%, communication storage accounted for 33%, household storage accounted for 15%, and portable storage accounted for 3%. From a global perspective, more and more countries and regions are increasingly eager for alternatives to fossil fuels. Renewable energy+energy storage solutions are widely recognized decarbonization solutions by countries, with clean energy as the core driver. Lithium battery energy storage is currently in an explosive period from 1 to X.

The development of energy storage can be said to be the only way to achieve dual carbon. In the new era of energy transformation, electricity is the central link of energy transformation and a key area for future carbon reduction. The proportion of non petrochemical energy generation such as wind power and photovoltaics will continue to rise. Due to the natural instability and intermittency of wind and photovoltaic power, energy storage must be combined to mitigate fluctuations and achieve stable operation of the power grid. Therefore, supporting energy storage facilities while vigorously developing wind and photovoltaic power is one of the necessary choices for power grid enterprises. Energy storage technologies include mechanical energy storage (pumping, compressed air, etc.), electromagnetic energy storage (superconductivity, supercapacitors, etc.), electrochemical energy storage (batteries), chemical energy storage (hydrogen production), etc. According to CNESA data, pumped storage has the largest cumulative installed capacity in the world, accounting for 90.3%; Electrochemical energy storage technology is becoming increasingly mature, with costs continuing to decline, accounting for 7.5% of the total installed capacity of energy storage, of which 92.0% are lithium batteries; According to GGII statistics, in 2021, lithium iron phosphate batteries accounted for over 95% of energy storage lithium batteries in China.

The era of electrochemical energy storage has quietly begun. Although pumped storage has the advantage in terms of total energy storage capacity, its cost reduction space is limited in the future. Electrochemical energy storage has a larger and more flexible cost compression space, and reducing initial system costs, reducing abandoned wind and solar power rates, and improving auxiliary benefits are all cost reduction measures. In addition, local governments have frequently issued various policies to ensure the construction of energy storage. Among the newly added energy storage projects worldwide, electrochemical energy storage accounts for the highest proportion. China's electrochemical energy storage has also broken through the key turning point of the 1500 yuan/kWh system cost repeatedly mentioned in the past few years, and the cost is expected to further decline in the future. Thanks to safeguard policies and cost reduction, the era of electrochemical energy storage has begun. The total amount of energy storage scale and the proportion of new energy storage scale have both rapidly increased. According to CNESA statistics, as of 2021, a total of 209.4 GW of global energy storage has been put into operation, of which 46.1 GW has been put into operation in China; In 2021, the world added 18.3GW of energy storage, a year-on-year increase of 185%, while China added 10.5GW, a year-on-year increase of 231%. Among them, the new type of energy storage has exceeded 25GW for the first time in 2021, reaching 25366.1MW, an increase of 67.7%, with an additional 10242.4MW added in 2021 alone; As of 2021, the cumulative scale of new energy storage in China has reached 5729.7MW, an increase of 74.5%. In 2021 alone, 2446.2MW of new energy storage was added, accounting for 23% of the total new energy storage scale.

The scale of new energy storage facilities built in the United States, China, and Europe determines the global total. In 2021, among the newly added markets, the United States accounted for 35% of the global new market, while China reached 24%, far exceeding other countries. The United States, China, and Europe together accounted for 91% of the global new market, making them the decisive force in determining the energy storage market. In emerging markets, Italy, Ireland, and the Philippines have emerged, while Germany's new additions are mainly concentrated in the distribution and storage of household photovoltaics, accounting for over 60%. It is expected that Europe, the United States, Japan, and Australia will lead the global household energy storage market. CNESA divides new energy storage applications into three dimensions: access location, application scenarios, and service types provided. According to the project access location, it is divided into power side, grid side, and user side, accounting for 41%, 35%, and 24% respectively; According to application scenarios, it is divided into 30 scenarios including independent energy storage, wind energy storage, solar energy storage, and industrial and commercial energy storage. The proportion of wind solar energy storage in the power supply side is gradually increasing; According to the types of services provided by energy storage projects, they are divided into six categories: supporting renewable energy grid connection, auxiliary services, large capacity energy services (capacity services, energy time shift), transmission infrastructure services, distribution infrastructure services, and user energy management services. The proportion of supporting renewable energy grid connection and auxiliary services is the highest.

China's energy storage has entered a stage of large-scale development. In 2021, China added 10.5GW of energy storage capacity, including 2.4GW of new energy storage capacity (361 projects). The cumulative energy storage and new energy storage capacity reached 46.1GW and 5.7GW respectively, indicating the rapid development of new energy storage. According to CNESA's statistics, there were 361 operational projects in China in 2021, totaling 2.4GW. The number of new energy storage projects under planning and construction reached 490, with a total scale of 23.8GW. Among them, there were 304 projects with a scale greater than 10MW, with a total scale of 23.2GW. Among them, there were 71 projects with a scale greater than 100MW, with a total scale of 15.8GW, and 5 projects with a scale greater than 500MW, with a total scale of 5.6GW. According to CNESA statistics, there are not only more projects under construction and planning, but also larger average project sizes. Projects with a scale of 100MW-500MW are the mainstream, and the Chinese energy storage market has entered a period of true scale development.

Encouraged by policies, market development has greatly exceeded expectations. In July of this year, the National Development and Reform Commission and the Energy Administration issued the "Guiding Opinions on Accelerating the Development of New Energy Storage", which proposed to achieve a new energy storage installed capacity of over 30GW by 2025. The new energy storage mainly includes electrochemical energy storage. According to the "Energy Storage Industry Research White Paper 2021" of Zhongguancun Energy Storage Industry Technology Alliance, as of the end of 2020, the cumulative installed capacity of electrochemical energy storage in China was about 3.27GW, which means that electrochemical energy storage will grow at least tenfold during the 14th Five Year Plan period. Based on the current growth rate of electrochemical energy storage, the shipment volume of energy storage batteries, and the future layout of battery companies, the future incremental space is far from limited. Overseas countries have experienced energy crises from 2021 to 2022, and the demand for energy storage on both the grid and user sides is accelerating. By 2025, the average annual compound growth rate of electrochemical energy storage may exceed 80%.

The demand for other sub sectors of lithium batteries will also accelerate growth. With the continuous reduction of lithium battery costs and the implementation of new national standards, the trend of lithium electrification in the electric bicycle market is inevitable; In recent years, the shipment volume of emerging electronic products such as TWS, drones, VR/AR devices, etc. has grown rapidly and may become a new growth point for consumer battery demand in the future. Electric bicycles, power tools, robotic vacuum cleaners, drones, and other specialized fields serve as effective supplements to lithium demand, while the electrification of construction machinery and ships is also accelerating. According to theoretical calculations, each 1GW lithium battery consumes approximately 500-700 kilograms of lithium salt (equivalent to lithium carbonate), and the consumption of different types of lithium batteries may vary slightly. The current mainstream ternary lithium battery NCM523 and lithium iron phosphate battery have theoretical lithium salt consumption (converted to lithium carbonate) of 686kg/GW and 524kg/GW per 1GW, respectively. Considering issues such as sintering loss of positive electrode materials, battery production waste, qualification rate, and pack loss, the actual lithium salt consumption is higher.

There are currently two main routes for the power batteries of new energy vehicles: lithium iron phosphate batteries and ternary batteries. Compared to lithium iron phosphate batteries, the biggest advantage of ternary batteries is their high energy density, fast charging speed, and potential for increasing range, which can solve the pain points of range. The ternary battery combines the advantages of lithium cobalt oxide, lithium nickel oxide, and lithium manganese oxide to form a three-phase eutectic system of the three materials. Due to the synergistic effect, its comprehensive performance is generally better than any single combination compound. Nickel helps to increase the specific capacity of the battery, cobalt can improve conductivity and cycle performance, and manganese can improve the stability and safety of the mechanism. In contrast, lithium iron phosphate has a relatively low energy density but does not contain metal elements such as nickel and cobalt. It is rich in phosphorus and iron resources, so its price is relatively low. Moreover, lithium iron phosphate batteries have good heat resistance, with a thermal runaway temperature of over 800 degrees Celsius, making them safer.

Lithium iron phosphate batteries are experiencing a resurgence, with long-term coexistence of iron lithium and ternary materials. The launch of BYD blade batteries has improved the anti-collision and crushing performance of battery modules, with more prominent advantages in safety and service life. At the same time, the special structure greatly enhances the endurance of blade batteries. Therefore, with high safety and improved endurance, the market share of lithium iron phosphate batteries has gradually increased. In the short term, lithium iron phosphate batteries have gained a significant advantage with their cost-effectiveness and continuous technological progress, and their shipment volume has exceeded that of ternary lithium batteries. In the long run, the two routes of ternary batteries and lithium iron phosphate batteries will be parallel, and ternary batteries have obvious advantages in energy density, range, low-temperature performance, and charging efficiency, and show greater potential. Therefore, in the future, ternary batteries may once again achieve a reverse trend, which is reflected in high-end passenger cars pursuing range capability using more high nickel ternary batteries, accelerating the penetration rate of high nickel ternary batteries, and further reducing the installed capacity of low nickel ternary batteries.

2、 The total amount of lithium resources is abundant, but high-quality resources are scarce

2.1 Concentrated distribution of lithium resources, with the largest total amount of lithium resources in brine

The global lithium resources are abundant in total and highly concentrated in distribution. The content of lithium in the Earth's crust is about 0.0065%, and there are over 150 known lithium containing minerals. According to USGS (United States Geological Survey) data, the global lithium metal resources in 2021 were approximately 89 million tons, with Bolivia, Argentina, Chile and other countries ranking among the top in terms of resources, also known as the South American Lithium Triangle, accounting for about 56% of the world's total resources. In 2021, the global lithium metal reserves were approximately 22 million tons, with Chile, Australia, and Argentina accounting for 78% of the total reserves. Although the total amount of lithium resources is abundant, they are unevenly distributed and concentrated in the South American lithium triangle and the Australian region. There are not many large-scale, high-grade, and economically viable mines, and high-quality resources are scarce.

The supply of lithium resources mainly consists of salt lake brine and hard rock lithium mines. Lithium resources on Earth are often produced in three forms: brine type lithium deposits, hard rock type lithium deposits, and sedimentary type lithium deposits. Among them, brine type lithium resources mainly include salt lake lithium water, geothermal water, oil and gas field water, and well brine. Currently, the proven reserves account for about 64% of the total lithium reserves, mainly concentrated in the South American lithium triangle countries; Hard rock lithium deposits are mainly composed of spodumene, lithium mica, etc., accounting for about 29% of global reserves, and are widely distributed in countries such as Australia, China, and Brazil; Sedimentary lithium deposits are mainly clay type lithium deposits, such as lithium montmorillonite and Jadal stone, accounting for 7% of global reserves, mainly distributed in the United States, Mexico, and other places.

2.2 Global resource development mainly focuses on salt lakes and spodumene

The early development and application of lithium resources mainly focused on two types of resources: spodumene and lithium salt lakes. The currently developed spodumene deposits are mainly concentrated in Australia, but such resources are widely distributed around the world, including Western Australia, North America, Sichuan, China, Africa, and other regions. The Greenbushes mine in Australia is currently the largest and highest quality spodumene mine in the world, with a grade of up to 2.1%. It has excellent resource endowment, large scale, and low cost; The Pilgangoora ore field in Western Australia is also a world-class pegmatite type lithium ore field, characterized by shallow burial depth, thick ore body, and high grade.

Salt lake resources were the main source of lithium supply in the past. Since the 1980s, lithium extraction from brine has become the dominant force in the world's lithium industry. In 1995, lithium extraction from brine accounted for only 26% of the total lithium production capacity globally. By 2003, the proportion of lithium extraction from brine in world lithium production had risen to 91.2%. The lithium deposits of salt lake brine type are mainly distributed in enclosed basins in arid climate zones within the range of 30-40 degrees north latitude and 20-30 degrees south latitude. Their genesis mechanism is mainly that in enclosed basins, especially in arid desert areas, lithium can be enriched in underground brine and form lithium deposits with mining value, such as the Andean Plateau in South America, the western United States, and the Qinghai Tibet Plateau in China. Salt lakes with large reserves in South America mainly include Salar de Atacama in Chile, Salar de Uyuni in Bolivia, Salar del Hombre Muerto in Argentina, etc. Zabuye Salt Lake in Xizang, China, and Qarhan Salt Lake in Qinghai are world famous salt lake brine lithium deposits.

2.3 Formation of Qinghai Tibet Salt Lake, Western Sichuan Lithium Mine, and Jiangxi Mica Pattern in China

China has abundant lithium resources, including major types of resources. Most countries only produce one type of lithium ore, which is mostly small and medium-sized deposits. Only a few countries such as China and Canada produce solid lithium ore and liquid brine lithium, and there are many large and medium-sized deposits. The supply of lithium resources in China is an important component of the global market. According to USGS data, China's lithium resources were 5.1 million tons in 2021, accounting for 5.6% of the world's total resources, and its lithium reserves were 1.5 million tons, accounting for 6.8% of the world's total resources. According to data from the State Administration of Land and Resources, China's lithium ore reserves in 2020 were 2.3447 million tons (oxides).

China's lithium resource endowment is poor, and high-quality resources are scarce. Although China has a large total amount of lithium resources, compared to South American lithium triangle countries and Australia, which are rich in lithium resources, China's lithium reserves do not have an advantage, and its domestic resource endowment is relatively poor. This is mainly reflected in the fact that the grade of hard rock lithium ore is good, but there are many coexisting elements and impurities. At the same time, the mining conditions in some areas are relatively harsh, and there is a winter break in winter; Salt lakes are mostly located in high-altitude regions. Domestic salt lakes generally have low grade, high magnesium content, and high magnesium lithium ratio. Salt lakes are located in remote areas and have high development costs. Not all salt lakes have lithium resources worth economically exploiting. Rich lithium salt lakes belong to a special type of salt lake. Although there is no clear definition standard, in the past it usually referred to salt lake resources with lithium ion concentrations exceeding 24.5mg/L (150mg/L lithium chloride). However, with the technological progress of salt lake lithium extraction, this economic boundary will continue to decrease in the future.

Sichuan has abundant spodumene resources and good endowments. Sichuan Province is rich in spodumene resources, concentrated in the Jinchuan Marcang and Kangding Daofu mineralization areas. Representative lithium mines include "methylka" and "keryin", with high ore grades of about 1.30% -1.42%, which is close to the overall level of Australian lithium mines. Sichuan Province's spodumene resources are the main distribution area of spodumene resources in China, but the natural conditions in Sichuan are relatively harsh, making it difficult to mine and utilize lithium resources. The spodumene mines in Ganzi Prefecture and Aba Prefecture are mostly distributed in high-altitude areas. Due to the high-intensity development of agriculture, forestry and animal husbandry, the mountainous vegetation coverage conditions are poor, soil erosion is severe, and the natural conditions are harsh, coupled with relatively weak infrastructure construction, resulting in a large amount of work in the early stage of development. Currently, only Kangding City Methyl Card No. 134 pulse (Rongjie Co., Ltd.) is in production Yelonggou spodumene mine in Jinchuan County (Shengxin Lithium Energy); The Lijiagou spodumene mine (Chuanneng Power) in Jinchuan County is still under construction; At present, there is no expected mining of other lithium mines. The Cuola spodumene mine in Yajiang County is in the process of slow construction and design optimization. The DeTuoNongba spodumene mine in Yajiang County is being auctioned, and the production of Dangba in Marcang County has been suspended. The newly discovered mining rights of the methyl card X03 vein have not yet been set. At present, most of the spodumene mines in Sichuan can be developed open-pit, but the development speed of some resources that require pit mining is slow.

The large-scale mining of lithium mica in Jiangxi has a fast growth rate. Yichun, Jiangxi Province, is rich in lithium mica resources and is known as the "Asian Lithium Capital", with the world's largest polymetallic associated lithium mica mine. According to government data such as the "Report on Lithium Resource Types and Industrial Applications in Yichun Region", Yichun City and its subordinate jurisdictions have proven usable lithium oxide reserves of over 2.58 million tons, equivalent to approximately 6.36 million tons of lithium carbonate. Due to the incomplete exploration work of the early Yichun lithium mica mine, a considerable number of mines have only explored a fraction of the area in detail, so the actual reserve scale may be significantly higher than the current statistics, and there is great potential for new reserves. The governments of Jiangxi Province and Yichun City continue to gather various policies to promote the development of the lithium battery new energy industry, gradually planning and establishing corresponding lithium mica beneficiation enterprises. With the dual support of technological policies, lithium extraction from lithium mica in Jiangxi region has begun to take shape. Stimulated by the high price of lithium carbonate, the production has the power to accelerate its release.

Lithium salt lakes are concentrated in Xizang, Qinghai, with huge reserves. Salt lake lithium resources are mainly stored in intergranular and surface brines, originating from ancient marine sediments, long-term river inflows, or underground hot springs. They are often associated with sodium, boron, potassium, and magnesium, but not all salt lakes contain lithium. Lithium resources in domestic salt lake brines are mainly distributed in salt lakes in Qinghai and Xizang. Among them, Qinghai Salt Lake has huge reserves, but the grade is low, the magnesium lithium ratio is high, and the mineralization degree is high. Traditional precipitation methods are difficult to apply. After long-term exploration and continuous optimization, some main salt lakes have found suitable lithium extraction technology routes and are gradually maturing. At the same time, although Qinghai is located in a high-altitude region, its infrastructure is relatively complete. Currently, Qinghai's development mainly focuses on the Qarhan, Dongtai Jinnaer, Xitai Jinnaer, and Yiliping Salt Lake. The lithium salt lakes in Xizang have great potential for reserves. From the south to the north, they can be roughly divided into carbonate type, sodium sulfate subtype and magnesium sulfate subtype salt lake belts. The brine of carbonate type salt lakes is rare in the world, showing the characteristics of high lithium concentration and low magnesium lithium ratio. It is a high-quality lithium mineral resource. A relatively simple process can be used to extract crude lithium carbonate, with Zabuye Salt Lake as the representative. However, Xizang salt lakes are mainly distributed in Ali, Naqu and the northwest of Shigatse, with an altitude of more than 4400 meters. Due to the difficulty of development due to natural conditions, the production capacity increases slowly.