Tuesday – 7 Shaaban 1444 AH – 28 February 2023 AD Issue Number [16163]
Beijing: «Middle East»
Chinese authorities have announced an investigation into suspected illegal mining practices in Yichun, the “lithium capital of Asia” which reportedly provides regarding a tenth of the world’s supply of lithium.
Prices of lithium, an essential component in the manufacture of batteries used in electric vehicles, hit record levels last year as demand for clean energy sources soared.
China is among the most important producers of this mineral in the world, and the launch of the investigation, which the government announced Friday on its WeChat account, might lead to large-scale mine closures with international repercussions.
Local officials note that Yichun in Jiangxi Province contributes up to 40 percent of China’s domestic reserves of lithium-rich lepidolite.
This, in turn, constitutes regarding 10 percent of the global lithium supply, according to Bloomberg, which earns the region the title of “lithium capital”.
The alleged violations include residents’ “chaotic” extraction of lepidolite in mining areas and surrounding natural areas, according to local news platform Kaijing.
Authorities report that unlicensed operations in the area cause serious problems such as environmental damage and traffic accidents related to mining trucks, and will therefore be closed down.
Kaijing said that within the framework of the investigation, the duration of which is not yet clear, officials will consider possible violations and measures that can be adopted in the hope of supporting the “healthy development” of the sector.
Beijing has stepped up its monitoring of domestic mining operations in recent years following decades of lax rules allowed small private companies to extract vast amounts under limited oversight.
Recent efforts by regulators have aimed to add “traceability” and “order” to the sector, with production increasingly concentrated in the hands of several giant state corporations.
Yichun city officials said they aim to boost the domestic lithium battery industry to a value of 150 billion yuan ($21.5 billion) by 2025.
