Chinese state-owned oil and chemicals company Sinopec completed a pilot trial of its proprietary lithium extraction technology using produced water from the Yuanba gas field — operated by its southwest oil and gas subsidiary.
The technology, known as the "rapid adsorption and desorption" process, was independently developed by Sinopec's engineering and construction subsidiary, the company said today. The pilot completed the entire process from lithium extraction to precipitation and drying, producing industrial-grade lithium carbonate.
The technology can cut production costs by more than 35pc compared with conventional lithium extraction processes, while shortening the processing route and improving extraction efficiency, Sinopec said. It marks a key technological breakthrough in integrating oil and gas production with new energy resources.
The development could provide an additional source of lithium supply from oilfield-produced water, complementing traditional lithium production from brines and hard-rock deposits, it said.
Oilfield-produced water refers to formation water that is brought to the surface together with oil and gas during petroleum or natural gas extraction. Its composition can vary significantly depending on geological conditions and the stage of reservoir development. For oil and gas fields located within lithium-rich mineral belts, lithium extraction from produced water could offer considerable commercial potential.
Global lithium demand is expected to reach 3.5mn t of lithium carbonate equivalent (LCE) by 2036, driven by continued growth in the electric vehicle (EV) and energy storage system (ESS) sectors, according to Argus Consulting forecasts.
Market participants have increasingly focused on alternative lithium resources as China seeks to strengthen domestic supply security. China is the world's largest consumer of lithium, but accounts for only around 7pc of global lithium resources and relies on imports for approximately 70pc of its lithium supply, according to industry data quoted by Sinopec.
Sinopec's move highlights a wider shift by traditional energy companies into new energy sectors as they diversify their businesses in response to government decarbonisation targets and the accelerating global energy transition.
Sinopec signed an agreement with leading new energy vehicle (NEV) manufacturer BYD in June to jointly develop fast-charging infrastructure — a move expected to support adoption of NEVs. Sinopec has also invested in China's largest battery producer, CATL, to help reach its target of building 10,000 EV battery exchange stations.
