Sichuan lithium deposit expands by 70%, strengthening China’s domestic supply prospects
The Jiada lithium mine in Sichuan now has registered resources of 2.53 million tonnes of lithium carbonate equivalent after an additional 1.05 million tonnes was approved. Developer Dazhong Mining says the deposit could eventually support annual production of about 50,000 tonnes of lithium carbonate.
China has expanded the registered resource base of the Jiada lithium mine in Sichuan by about 70%, strengthening the country’s potential domestic supply of a metal used in electric-vehicle batteries and energy-storage systems. The deposit now contains about 2.53 million tonnes of lithium carbonate equivalent, after an additional 1.05 million tonnes was identified and approved, state news agency Xinhua reported. The previous registered resource stood at 1.48 million tonnes.
Developer Dazhong Mining said in a filing that the new resources had passed review and registration by the Ministry of Natural Resources. They comprise 33.52 million tonnes of ore containing about 423,800 tonnes of lithium oxide, with an average grade of 1.26%. The increase represents 70.5% growth from the previously registered resource.
The company estimates that the mine’s initial extraction area could produce about 50,000 tonnes of lithium carbonate a year at full capacity. The approved extraction scale is 2.6 million tonnes of ore annually. However, the project is still completing procedures to obtain mining and operating permits.
Lithium is used in batteries for electric vehicles, energy-storage systems and consumer electronics. China has substantial domestic deposits, but its industries remain reliant on overseas supplies. The China Nonferrous Metals Industry Association estimates that overseas sources accounted for about 60% of China’s lithium resource supply in 2025.
China imports concentrates from countries including Australia, Zimbabwe and Brazil, while Chile and Argentina are its main sources of imported lithium carbonate. The government has been pursuing domestic exploration since 2021 to improve supplies of strategic minerals and strengthen supply chains. Jiada lies within a western Chinese lithium belt stretching across the West Kunlun, Songpan and Garze regions.
Xinhua quoted Wang Denghong of the Chinese Academy of Geological Sciences as saying the additional resources would reinforce western Sichuan’s resource base and help reduce reliance on foreign sources. The announcement follows other exploration gains in Sichuan, Hunan and elsewhere. China identified eight new lithium deposits nationwide in 2025, according to the China Geological Survey.
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