How huge lithium deposits in the Himalayas could benefit China

Highlights

• Lithium carbonate prices have zoomed to record levels of CNY414,500 per tonne, a whopping ~514% higher than the prices last year.
• Chinese researchers have discovered a huge lithium mine in the Mount Everest region.
• Among global lithium entrants, Codelco has announced its plans to start lithium exploration in the Salar de Maricunga next month.

Global energy transition is driving prices of green metals to multi-year highs in an attempt to achieve net-zero carbon emissions. The recent rally in these strategic minerals has been fuelled by an upsurge in demand for electric vehicles and renewable energy. Lithium is one such green metal that has witnessed exponential growth in its prices lately.

Consequently, Lithium carbonate prices have zoomed to record levels of CNY414,500 per tonne, a whopping ~514% higher than the prices last year. The white shiny metal is extensively used in the manufacturing of lithium-ion batteries, which are used to power electric vehicles.

Good Read: Here’s  the why mining majors are cashing in on lithium rally

Source: © Axel2001 | Megapixl.com

Lithium mine in the Mount Everest region

Amid this buoyant setting, few Chinese researchers have discovered a huge lithium deposit in the Mount Everest region. As per ScienceNet, a website backed by the Chinese Academy of Sciences, the hard rock mine could be the third-largest lithium deposit in China.

As reported by the state broadcaster China Central Television, the mine is located nearly 3km from the Qiongjiagang peak at a height of 5,000m above sea level in the Qinghai-Tibet Plateau with the potential to host over 1 million tons of lithium oxide resources.

The newly discovered resources contain spodumene, a lithium-bearing rock. To be sure, it is an early-stage discovery and the actual scale and economics of the deposit are yet to be assessed.

Source: © Olivier26 | Megapixl.com

If viable to extract, the mine could play a very significant role to fulfil China's lithium demand as the country imports nearly 70% of the total supplies to cater to its dominating battery manufacturing sector.

Must Read: Lithium stocks that are garnering attention on ASX

Currently, the project is in its first stage out of the total planned four stages, with the final stage containing full exploration to come up with a detailed mine development plan.

How huge lithium deposits in the Himalayas could benefit China

Skying lithium demand

To meet the surging demand, miners across the globe are diversifying their portfolios and stepping into the lithium mining and refining business to capitalise on the ongoing rally. Earlier this week, Chile's copper mining giant - Codelco - announced its plans to start lithium exploration in the Salar de Maricunga next month.

Source: Copyright © 2022 Kalkine Media®

In recent months, electric vehicle manufacturers are entering into supply agreements directly with miners to secure the reliable supply of lithium in the future. Recently, EV giant Tesla inked a five-year lithium supply deal with Australia’s Liontown Resources (ASX:LTR) to secure the critical metal’s supply.

Must Read: Liontown (ASX:LTR) signs lithium supply deal with Tesla, shares soar

Bottom Line

The rising demand for EVs is driving demand for lithium very rapidly. The current discovery of the lithium mine at Mount Everest could play a significant role in fulfilling China's lithium demand and strengthening the country's position as an important lithium-producing nation.