New Industrial Line Based on Brines Increases Lithium Production and Strengthens Chinese Strategy Amid Global Battery and Energy Technology Market Expansion, Focused on Efficiency, Scale, and Natural Resource Utilization.
China has launched a production line announced as the world’s first capable of extracting up to 20 thousand tons per year of lithium from the brine of salt lakes.
The initiative, located in the Qinghai Province in the northwest of the country, is part of an effort to increase the domestic supply of a resource deemed strategic for the battery industry, according to information released by the state agency Xinhua and reported by local media.
Lithium, often referred to as “white gold”, is widely used in the manufacturing of lithium-ion batteries that power electric vehicles, energy storage systems, and electronic devices.
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The expansion of production occurs at a time of growing global demand for these technologies, driven by the energy transition and the electrification of transportation.
According to Xinhua, the project was developed by Qinghai CITIC Guoan Technology Development and presented as an industrial advancement in addressing historical limitations of lithium extraction from salt lakes.
Traditionally, methods based on solar evaporation experience significant losses of the metal throughout the process.
Lithium Extraction Technology in Salt Lakes
The main technical difference highlighted in official communications lies in the lithium recovery rate in the initial stages of extraction.
According to the Chinese state agency, the technology adopted in the project raised the recovery rate in the initial phase to around 78%, while conventional methods typically remained below 50%.
Moreover, the total recovery throughout the entire industrial process is said to have increased from 75.38% to 90.41%.
In practice, this means that a larger portion of the lithium present in the brine is converted into the final product, reducing losses along the production chain.
Industry experts often point out that gains of this nature tend to improve the utilization of natural resources and decrease industrial waste.
In the case cited by Xinhua, the report indicates that the advancement helps to extend the lifespan of salt lake deposits, which are considered more complex to exploit.

Supply Chain and Lithium Security in China
The commissioning of an industrial line with this capacity occurs in a context of increased focus on security of supply of critical raw materials.
Chinese authorities and analysts often emphasize the need to reduce external dependence in sectors deemed essential for the country’s economic and technological development.
According to Xinhua, the project is viewed as a relevant step to strengthen a more stable and self-sufficient lithium supply chain.
This movement is directly linked to the growth of the new energy sector, which includes electric vehicles, renewable generation, and storage systems.
Furthermore, according to the agency, the new technology is also presented as part of a broader effort for industrial modernization, focusing on processes described as more efficient and integrated.
The report states that the approach may serve as a reference for other similar initiatives in the country.
Lithium Project in Qinghai and Resource Utilization
The information released indicates that the facility has already reached the planned production capacity.
The Qinghai Province houses some of the main resources of salt lakes in China, but historically faces technical challenges in extracting lithium efficiently in this type of environment.
Xinhua also highlights that the process allows for the joint utilization of other elements, such as potassium and boron, without compromising lithium extraction.
The idea, according to the released material, is to maximize the use of available resources within the same production system.
However, details regarding investments made, operational costs, or the direct economic impact of the project have not been disclosed in detail in the official communications.
Impact of Chinese Lithium on the Battery Market
With an annual capacity of 20 thousand tons, the new production line tends to increase the domestic supply of lithium for an expanding market.
Industry analysts often point out that efficiency gains in extraction can help reduce costs along the supply chain, although specific numbers have not been presented in this project.
By consolidating its own technology to explore salt lakes, China reinforces its strategy to control critical stages of the lithium value chain, from extraction to the supply of materials for batteries.
This technological dominance is often cited by experts as one of the factors explaining the country’s position in the global battery industry.
With the demand for energy storage and electric mobility on the rise, the international competition involves not only access to reserves but also the development of more efficient processes.

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