The biggest reserve of the century? China has discovered 30 million tonnes of lithium in Tibet, boosting its global reserves to 16,5% and threatening the dominance of countries such as Australia and Chile. The impact could send battery prices plummeting and boost the green energy revolution, but environmental challenges in the Tibetan ecosystem are worrying experts.
Lithium is the “white gold” of the electrification era. It’s found in the batteries of our smartphones, laptops and, of course, electric cars. But what happens when a country discovers a gigantic reserve of this resource? China has just discovered a lithium deposit in Tibet so large it could be a game-changer.
This unexpected discovery not only solidifies the Chinese position in the market of green energy, but it can also cause a significant drop in the price of batteries. But, like all major exploration, it also raises environmental concerns. Let's understand the impact of this “treasure” that China has found.
The unexpected lithium giant
The race for lithium has gained a new champion. Until recently, China held around 6% of the world’s reserves of this essential mineral. With the discovery of the deposit in Tibet, that percentage jumped to an impressive 16,5%, making the country one of the main players in the global market.
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It is estimated that this reserve contains approximately 30 million tons of lithium, surpassing nations such as Australia, Argentina and Bolivia. With this, China becomes the second largest holder of reserves in the world, behind only Chile. This new scenario allows the country to reduce its dependence on imports and strengthen its battery industry.
The economic impact of this discovery for China
With this new mine, China is positioning itself as a major global supplier of lithium, which could have direct consequences for battery prices. Until now, the cost of production has been gradually falling – in the last ten years, the price of lithium-ion batteries has fallen by 73%. With this discovery, this price could plummet even further.
The deposit is estimated to have a commercial value of 600 billion euros, which should further stimulate the industry growth Chinese technology and electric mobility. In addition, this new reserve can attract large investments in sustainable technologies, accelerating the global energy transition.
The environmental challenge of lithium in Tibet
It’s not all good news. Lithium mining can have serious environmental impacts, and the location of the new reserve is a cause for concern. Tibet is a region with a fragile ecosystem, where any mining activity could directly affect biodiversity and water resources.
Lithium mining consumes large amounts of water, which can lead to shortages and harm to local communities. China, already facing criticism over environmental issues, will need to balance the economic benefits of the discovery with the need to preserve the Tibetan region.
A turning point in the green energy revolution
This breakthrough comes at a critical time for the global energy transition. Lithium-ion batteries are essential for storing renewable energy and enabling the expansion of electric vehicles and clean energy systems. With more lithium available, the world can accelerate this transition even further.
Now, the big question is: how will this new dynamic impact the global market? Will China dominate the battery production chain even more? And will prices fall drastically? It is still too early to predict everything, but one thing is certain: this discovery puts China at the center of the green energy revolution.