How are China's salt lake lithium producers reshaping the supply landscape and cost curve?

Salt lake lithium extraction is emerging as a strategic cost advantage for China. Domestic production costs of 30,000-40,000 yuan/ton are significantly below imported spodumene conversion costs, yet salt lake output only accounted for 17.7% of China's 2024 production of 702,000 tons, down from 28.6% in 2020. This paradox is now being addressed. Salt Lake Industry, after becoming central SOE-controlled, has expanded capacity to 98,000 tons of lithium salts, including 18,000 tons from Wukuang Salt Lake, using advanced direct extraction from raw brine that doubles recovery rates. Zangge Mining, now under Zijin Mining's control, is developing multiple Tibetan salt lakes with potential equity capacity of 60,600 tons. Tibet plans 400,000 tons of capacity, with 200,000 tons already approved. These projects are set to progressively lower China's cost curve and reduce import dependence.