UBS: "China to Control One-Third of Global Lithium Production"

It is forecasted that one-third of the global supply of lithium, a key raw material for electric vehicle batteries, will come under China's control within the next two years.

Swiss investment bank UBS Group observed in a report on the 13th (local time) that the lithium production of Chinese companies, including overseas mines, is expected to increase to 705,000 tons by 2025. This represents approximately a 263% increase from last year's production (194,000 tons).

China's share of lithium production is 24%, ranking third in the world after Australia (47%) and Chile (30%). In terms of reserves, China (6.8 million tons) has less than Bolivia (21 million tons), Argentina (20 million tons), Chile (11 million tons), the United States (12 million tons), and Australia (7.9 million tons).

[Image source=AFP Yonhap News]

Lithium is an essential material used to make batteries for electric vehicles and smartphones. Bloomberg News reported that China, the largest market for new energy vehicles (electric vehicles, hybrid vehicles, hydrogen vehicles), is in urgent need of securing resources as the world's largest lithium consumer. Last year, sales of new energy vehicles in China reached 6,887,000 units, accounting for more than 60% of the global market.

For this reason, Chinese companies are engaged in a lithium mine scramble in Australia, South America, and Africa. Additionally, China recently appears to have started 'regulating' lithium production in Yichun, Jiangxi Province, its largest lithium production area.

Chinese authorities have formed a joint investigation team consisting of the Ministry of Natural Resources, Ministry of Industry and Information Technology, National Development and Reform Commission, and Ministry of Public Security, citing the prevention of illegal production, processing, and distribution, and are conducting on-site investigations.