China May Hold Untapped Lithium Reserves Beneath Battery Factories, Study Finds

China could hold significant untapped lithium resources beneath its battery manufacturing hubs in East and South China, according to a recent study that identified clay-type lithium deposits formed by ancient volcanic activity, the South China Morning Post reported. Researchers from the Chinese Academy of Sciences found evidence of lithium mineralization in volcanic rock clay layers, with potential targets overlapping the country's lithium battery industrial clusters. Duan Zheng of the academy said local supplies could significantly reduce transport costs and supply-chain risks if proven viable. China controls 70% to 80% of the global lithium supply chain and ranks second in production behind Australia, while dominating processing. The studied formations carry lithium concentrations of a few hundred to 1,000 parts per million — low by commercial standards — and viability remains unproven. The finding comes as China's battery sector faces overcapacity following years of subsidies, even as Beijing targets dominance in solid-state batteries within five years.