In China’s west, a mineral belt stretching some 2,800 kilometers is reshaping the global lithium landscape. The Ministry of Natural Resources recently disclosed that the so-called “Asian Lithium Belt”—running across Sichuan, Qinghai, Tibet, and Xinjiang—contains multiple large and super-large deposits, propelling China’s share of global lithium reserves to second place.
The discovery comes at a pivotal moment for China’s battery sector. As demand for electric vehicles and energy storage continues to surge, the world’s reliance on lithium has deepened. China, long dependent on imports to meet its needs, now sees the new belt as a potential buffer against supply risks—and as fresh leverage in its bid to dominate the global battery supply chain.
At the core of the belt lies Jiajika in western Sichuan, considered one of the world’s richest spodumene deposits. Official data show that Sichuan accounts for more than half of China’s proven lithium reserves. In recent years, the province has drawn heavyweights such as CATL and Tianqi Lithium, gradually building a full supply chain from mining to battery manufacturing.
Between 2019 and 2021, Sichuan’s share of national lithium-battery investment jumped from 8% to 18%, the fastest growth in the country. In 2021 alone, the province attracted over 170 billion yuan ($24 billion) in lithium projects, ranking first nationwide. Cities like Yibin and Suining have seen their economies transformed: Yibin’s output of power batteries has ballooned from less than 2 billion yuan a few years ago to more than 100 billion.
For Beijing, securing more lithium is not just about industrial policy but also energy security. China has long been one of the world’s top importers of the metal. With the new finds, its share of global reserves has risen from 6% to 16.5%.
Analysts say this will further bolster China’s leadership in electric vehicles and storage technologies. Yet challenges loom. Some domestic deposits are lower grade and costly to exploit, while environmental standards are tightening. Balancing capacity expansion with ecological protection remains a thorny issue for local authorities and companies alike.
On the ground, the lithium boom has already redrawn local economies. Suining, dubbed “China’s Lithium Capital,” is home to Tianqi Lithium and other key players, supplying about 7% of the nation’s lithium salts. Yibin, meanwhile, has leveraged CATL’s investment to become “China’s Power Battery Capital,” producing one-sixth of the country’s cells.
Provincial officials expect Sichuan’s full lithium-battery value chain to exceed 500 billion yuan ($69 billion) by 2025. That goal would not only strengthen China’s global clout but also give its western cities new engines for growth.
The rapid rise of Chinese lithium is drawing scrutiny abroad. Today’s global battery industry leans heavily on a few suppliers—Australia, Chile, and Argentina chief among them. China’s leap on the resource side could intensify geopolitical competition along the supply chain.
Industry executives warn that if China commands both mining and manufacturing, other countries may face deeper dependency in their clean-energy transition. And with demand still accelerating, the market will need more production capacity to prevent fresh price shocks.