Chinese electric vehicle battery costs could fall after huge lithium reserve discovered in Tibet

A massive lithium reserve has been discovered in Tibet, and experts say it could drastically reduce the cost of Chinese electric vehicle batteries. The discovery has the potential to transform the industry and reinforce China’s leadership in the sustainable automotive market.

A recent discovery in Tibet could transform the global lithium market. The deposit found in the region is estimated to contain around 30 million tons of the mineral, which can reduce the cost of electric vehicle batteries.

This puts China in second place in the ranking. overall of reserves, behind only Chile.

The news comes at a strategic time, when demand for electric vehicles and clean energy systems is growing rapidly. Lithium is a key player in this transition.

The Lithium Triangle and the new protagonists

Until now, most of the known lithium reserves were concentrated in the so-called Lithium Triangle, formed by Bolivia, Argentina and Chile.

These regions include salt flats such as Uyuni, Hombre Muerto and Atacama — all famous for their large deposits.

Australia, in turn, leads in the extraction of the mineral. The United States also has significant reserves, especially in the state of Nevada.

In recent years, China has been standing out by exploring its own deposits and strengthening its production chain. But the new discovery in Tibet takes the country to a new level.

The discovery that changes everything

With the new reserve, China's share of global lithium stocks jumps from 6% to 16,5%. This growth has a direct impact on the battery industry and the electric vehicle market.

The economic value of the deposit is estimated at $650 billion. In addition, the discovery could attract new investment, create jobs and strengthen China's role in green technology.

Another important point is the effect on prices. Local production tends to reduce battery costs. This can help make electric cars cheaper and more accessible, accelerating the energy transition in the world.

Price reduction and global impact

Over the past decade, the price of lithium-ion batteries has fallen by 73%. With the new Chinese deposit, this trend could accelerate. The more lithium on the market, the greater the supply and, therefore, the lower the cost.

This is good news for consumers and businesses. Electric mobility could become more competitive. And energy storage solutions should also benefit.

For China, it is a chance to reduce its dependence on imports and ensure greater technological autonomy. In times of trade tensions and geopolitical disputes, this is an important asset.

The environmental challenge in Tibet

Despite the economic and technological benefits, the exploitation of the deposit raises environmental concerns. Tibet is a fragile region with sensitive ecosystems.

Experts warn that strict measures will need to be taken to avoid irreversible damage. Lithium extraction, if not carried out in a controlled manner, could impact water resources, local fauna and flora.

Sustainable management of the new deposit will therefore be essential. The challenge will be to balance technological advancement with environmental preservation.

China’s advance in the lithium sector is reshaping the global landscape. But how the country deals with the environmental impacts will define the real value of this historic discovery.