China forms Beijing-backed lithium group to develop salt lakes

By Aya El Sayed On Sep 9, 2024

A brine pool at a Sociedad Quimica y Minera de Chile (SQM) lithium mine on the Atacama salt flat in the Atacama Desert, Chile, on Wednesday, March 13, 2024. After a spectacular bust, battery-metal lithium is showing tentative signs of life on speculation the retracement that convulsed the market last year has forced the conditions for a recovery. Photographer: Cristobal Olivares/Bloomberg (Cristobal Olivares/Bloomberg)

China Minmetals Corp. is set to take a controlling 53 per cent stake in a new joint venture, China Salt Lake Group, as part of a plan to accelerate the development of a world-class lithium extraction industry in China’s salt lakes.

The venture will take over Qinghai Salt Lake Industry Co., a key player in the country’s lithium sector, with a registered capital of 10 billion yuan ($1.4 billion).

This move highlights China’s central government efforts to expand its influence in the lithium industry, particularly in Qinghai province, home to many lithium-rich salt lakes.

Qinghai Salt Lake’s shares surged by over 8 per cent following the announcement.

While global lithium prices have dropped due to an oversupply, demand is expected to grow in the coming decades to meet the needs of electric vehicles and energy storage systems. Two Qinghai government entities will hold the remaining stake in China Salt Lake Group.

Attribution: Bloomberg

Subediting: M. S. Salama