China has achieved a major industrial breakthrough in lithium production — a metal critical for electric vehicle batteries — by launching the world’s first production line with a capacity of 20,000 tons using a new technology for extracting lithium from salt lake brine, the People’s Daily (Renmin Ribao) as saying.

The facility, built by Qinghai CITIC Guoan Technology Development Co., Ltd. in northwest China’s Qinghai Province, has reached its designed production capacity.

According to the newspaper, the successful launch of the production line will significantly increase the comprehensive utilization rate of China’s salt lake lithium resources and extend their economically viable lifespan. The project also provides an important model for upgrading the industry toward more environmentally friendly, intelligent, and large-scale operations.

Lithium, often referred to as “white gold,” is a core component of rechargeable lithium-ion batteries that power electric vehicles, consumer electronics, and large-scale energy storage systems. This breakthrough is seen as a key step in building a more self-sufficient and secure lithium supply chain for China, strengthening the strategic security of its rapidly growing new energy sector.

The core technology, a proprietary multi-patented process, has raised the lithium extraction rate at the brine pond stage — where industry averages were previously below 50% — to over 78%. Moreover, the overall lithium recovery rate across the entire production workshop increased from 75.38% to 90.41%.