China’s efforts to increase mining of lithium could account for nearly a third of the world’s supply by 2025, according to UBS.
UBS expects total lithium production from mines controlled by China, including projects in Africa, to rise to 705,000 tonnes by 2025, up from 194,000 tonnes in 2022. According to Friday’s report, the pairElectric CarChina will account for 32% of the global supply of the critical mineral for batteries by 2025, up from 24% last year.
As the world moves away from fossil fuels, many countries, including the United States, have prioritized lithium supplies. China’s need for lithium is particularly urgent because it has the world’s largest market for electric vehicles.
Increased production in China will include material extracted from lepidolite, a lithium-rich ore often overlooked because of low production and high energy costs. But as authorities continue to support the industry, UBS estimates that lithium supplies from lepidolite in China will grow from 88,000 tonnes last year to 280,000 tonnes by 2025, accounting for 13% of global supply.
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