China finds large Li deposit in Yunnan

China has discovered a large lithium carbonate clay deposit in Dianzhong region in southwest China's Yunnan province, according to the institute of geochemistry of the Chinese academy of sciences.

Estimated resources of the deposit are more than 5mn t, which is expected to support a world-class lithium production base.

China is a net importer of lithium mineral resources, with a 80pc dependence during 2011-15. This has pushed China to look for new resources.

China is also developing the Jiajika spodumene mine in Ganzi city in southwest China's Sichuan province. The mine is expected to become the world's largest spodumene mine with a proven lithium oxide reserve of 2.8mn t and prospective reserves of more than 5mn t.

Chinese lithium firms are also exploring lithium resources in the global market. China's Jiangxi Ganfeng Lithium last month invested in Canada-based lithium developer Bacanora Minerals' Sonora Lithium project in north Mexico to explore its lithium clay resources.

Many countries have been popularising electric vehicles in recent years. Global demand for lithium resources has greatly increased, driven by growing demand from the lithium-ion power battery market.

China is forecast to produce and sell 1.5mn new electric vehicles (NEVs) this year, according to China's ministry of industry and information technology. The country produced 367,600 NEVs during January-April, up by 58pc from a year earlier, while sales increased by 60pc to 360,000 units.