How big is the 'lithium' in Sichuan?

With the continuous promotion of the goal of "double carbon" and the deep adjustment of energy consumption structure, new energy has become one of the hottest industries, among which lithium batteries and new energy vehicles have become the new business cards of China. Data show that China's lithium battery production accounts for more than 65% of the global total, and the new energy vehicles production accounts for more than 60% of the global total.

The lithium battery industry, as a pillar industry to form new high-quality productivity, is a key to build a clean, low-carbon, safe and efficient modern energy system. In recent years, it has become the main direction for industrial investment and cross-border distribution of capital.

Among the provinces and cities that have already entered the market, Sichuan is especially eye-catching. At present, the scale of lithium battery industry in Sichuan ranks among the top in China, and the construction of a world-class lithium battery industry base is being accelerated.

Many people may wonder why the lithium battery industry in Sichuan is at the forefront of national development? How big is its planned future 'lithium "? 

1)Poly "lithium" is the driving force, and Sichuan has become the "leader" of the lithium battery industry

Why is the development of lithium battery industry in Sichuan in the leading first echelon in China? First, we need to start with lithium mineral resources.

When it comes to new energy, lithium batteries can not be ignored. As the most critical component in electric vehicles, they account for about 40% of the cost of an electric vehicle, and lithium batteries can not be separated from lithium ore.

Data show that the global lithium mine resources will reach 98 million tons in 2022, of which Bolivia, Argentina and Chile account for 53% of the global total. China is relatively rich in lithium resources, totaling 6.8 million tons, accounting for 7% of the global total, ranking sixth.

Lithium resources in China are mainly distributed in Sichuan, Qinghai, Tibet and Jiangxi provinces. Among them, Sichuan's lithium ore resources account for more than half of the country's reserves, and hard rock lithium ore resources account for about 57% of the country's total, ranking far ahead. In this way, Sichuan has a unique advantage in developing lithium battery and other industries. 

Sichuan is not only rich in lithium mineral resources, but also has a great capacity.

Up to now, the mining capacity of lithium ore in Sichuan Province is nearly 1.55 million tons, and the capacity of basic lithium salt is 540,000 tons. In 2022, the output of basic lithium salt was 180000 tons, ranking first in China, the output of cathode materials was 370000 tons, ranking second in China, and the output of cathode materials was 180000 tons, ranking third in China. At present, the total planned capacity of lithium battery projects in Sichuan has exceeded 600 GWh, accounting for 12% of the whole country, with an output value of 1.4889 trillion yuan.

In addition, the unique hydropower resources in Sichuan are also a key driving force for the rapid development of the lithium battery industry.

As we all know, lithium-ion batteries is labeled as new energy source when it is used, but as chemical products, it consumes a lot of energy during production. Sichuan is rich in hydropower resources. At present, its installed capacity is 90 million kilowatts, and its annual clean power output exceeds 350 billion kilowatt hours. Its installed hydropower capacity and annual power generation rank first in China, ensuring adequate power supply. Undoubtedly, it is an ideal place for the development of the lithium battery. 

Abundant and low-cost hydropower resources can not only help enterprises to realize "green power production" of energy saving and emission reduction, but also save costs for enterprises. It is estimated that only the power part can save the cost by 34% to 50%.

The development of the lithium battery industry in Sichuan not only relies on the unique resource advantages, but also benefits from the layout of the lithium battery industry in Sichuan in the past 30 years.

According to incomplete statistics, there are 93 industrial bases of lithium battery in Sichuan. Suining, known as the "Capital of Lithium Batteries", developed the earliest, with as many as 20 lithium battery bases, followed by Meishan, Chengdu and Yibin, with more than 10 each.

Meishan has settled in the project of the largest foreign-funded lithium battery material factory in Sichuan Province; Based on the production of anode and cathode materials for lithium batteries, Ya 'an established the largest material production base in the Chengdu and Chongqing and western regions; Zigong is focusing on the assembly and recycling of lithium batteries in order to realize differentiated competition.

Yibin is one of the most typical example. In less than 8 years, the power battery industry chain will be developed into the largest emerging industry in the city, with a scale of over 100 billion. It has also held two World Power Battery Conferences in succession, making it a new business card of "Power Battery Capital" more shining.

At present, the lithium battery industry in Sichuan is showing a pattern of their own struggle and common development. In 2022, the lithium battery industry in Sichuan Province achieved a revenue of about 230 billion yuan, forming a development trend of enterprises on par with each other and becoming a real leader in the lithium battery industry in China. 

2)The concept of "lithium" is constantly innovating, and the industry is once again seeking a "ascending path"

There is a term in economics called the 'resource curse ',which refers to the economic development of countries with outstanding natural endowments (such as mineral resources or marine resources) that is not ideal, sometimes even stagnant or regressing.

Rich lithium mineral resources and hydropower resources provide a good foundation for the rise of lithium batteries in Sichuan. However, it is not a long-term solution to rely solely on selling resources. We must consider how to extend our resource advantages to the whole industry, and constantly consolidate and enhance our competitiveness.

In 1992, Suining started the lithium carbonate project. At that time, new energy vehicles was just a "concept", and lithium batteries had not become a hot new energy. However, Suining, as one of the earliest cities in Sichuan and even the whole country, has taken the lead in developing lithium batteries.

In recent years, Suining has seized the opportunity of industrial development, regarded the lithium battery industry as the "number one project" of urban industry, and accelerated the scale of the industry to 10 billion. 

In August this year, the first phase of Suining Waste Lithium Battery Recycling Project was put into production, which marked a crucial link in the industrial chain of Suining Lithium Battery. After the third phase of the project is completed, 100,000 tons of waste lithium batteries can be recycled every year, and about 7,500 tons of battery-grade lithium carbonate can be produced, which is equivalent to rebuilding a lithium mine on the original site. This will further improve the entire lifecycle industry chain of "lithium resource development lithium battery materials battery management new energy vehicles battery recycling" in Suining.

The continuous improvement of the industrial chain, specific to enterprises, brings real cost reduction and efficiency improvement.

At present, Yibin has established a power battery industry chain centered around Sanjiang New Area and radiating to all districts and counties. The industry covers basic raw materials such as lithium hydroxide, iron phosphate and conductive agents in the upstream, anode and cathode materials, current collectors (copper and aluminum foil) and separators in the midstream, power battery cells, new energy vehicles, charging and replacing equipment and battery recycling in the downstream, etc.

Yi Kai Automobile, located in Yibin, is the only dual-qualification vehicle manufacturing enterprise in Sichuan. The relevant person in charge said that the localization of the Yibin's industrial chain is becoming more and more mature, and the most direct benefit for the company is that the battery costs is greatly reduced. On the one hand, the transportation cost of localization is obviously reduced, and on the other hand, the cost advantage of upstream raw materials will also be transmitted to the automobile factory.

While constantly improving the industrial chain of lithium battery in various regions, Sichuan has also introduced multiple policies to promote the lithium battery industry to become bigger and stronger. 

From a planning perspective, Sichuan will deeply tap into domestic demand, focus on the consumer side, transfer its resource advantages to downstream industries, and then to the consumer market, driving upstream industries and regional economic development. Through continuous innovation of the concept of "lithium", Sichuan's lithium battery industry is once again seeking the road of "rising", and its future development prospects are also worthy of public expectation.