Tracking of Chinese Lithium Mine Projects - Sichuan Province

I. Summary of Lithium Mining Capacity in Sichuan Province

At present, the lithium mining projects in Sichuan Province, China mainly include Jiajika No.134 Vein, Yelonggou, Lijiagou and Dangba Township. According to official data, the total lithium concentrate production capacity for 2025 reaches approximately 524,500 tonnes per year, with distribution as follows Jiajika No.134 Vein with 70,000-80,000 tonnes, Yelonggou with 75,000 tonnes, Lijiagou with 180,000 tonnes and Dangba Township with 174,500 tonnes.

As for development progress, new projects such as Cuola and Murong are currently under construction. Cuola's concentrator has resumed construction and plans full-scale advancement in 2025. Murong has obtained a mining license for 3 million tonnes of raw ore, with designed LCE capacity of 70,000 tonnes. Among operational projects, Lijiagou has entered commissioning phase, continuously producing qualified concentrate. Dangba Township's 5,000-tonne/day concentrator expansion is scheduled for H2 2025 commissioning.

While Sichuan's development pace lags behind Australia's mature mining regions, its resource endowment is exceptional. Yajiang County reports proven resources of 220 million tonnes of spodumene ore and 3.06 million tonnes of lithium oxide, making it the world's largest pegmatite-type lithium deposit by reserves.

Source: Mysteel

II. Introduction to All Projects

1.Jiajika No.134 Vein- Rongy Co., Ltd.

The Jiajika spodumene mine, located at the junction of Kangding, Daofu, and Yajiang counties in Sichuan's Ganzi Prefecture, ranks as the world's second-largest and Asia's largest solid spodumene deposit. Rongy Co., Ltd. holds 100% equity of the Kangding Jiajika No.134 vein, with exclusive exploration and mining rights. Meanwhile, the No.134 vein project is operated by Rongda Lithium, a wholly-owned subsidiary of Rongy, currently in stable production phase. In addition, Rongy's disclosed data shows that it has annual 1.05 million-tonne open-pit mining capacity and 450,000-tonne raw ore processing capacity, positioning it as China's key large-scale spodumene supplier.

According to the announcement of Rongy, the total reserves of Jiajika No.134 vein reached 28.995 million tonnes, with an average grade over 1.42% Li2O. And it owns the annual output of 70,000-80,000 tonnes of lithium concentrate per year at full capacity. In addition, the annual supply is projected to reach 470,000 tonnes based on the feasibility study.

2. Cuola Lithium Mine- Tianqi Lithium

The Yajiang Cuola lithium mine is situated within the Jiajika spodumene mining area. The concentrator construction resumed work in August 2024 and feasibility studies for related projects are currently underway.

At the 2025 Shareholders' Meeting, Tianqi Lithium confirmed that it will accelerate the development of Yajiang Cuola spodumene project. At present, the project has originally obtained the mining license in 2012 and resumed preliminary work in 2022 after temporary suspension. And it will begin full-scale construction of concentrator facilities in 2025. Upon completion, the project will serve as Tianqi's first domestic lithium concentrate supply base.

3. Yelonggou Spodumene Mine-Chengxin Lithium (Aoyinuo Mining)

The Yelonggou Spodumene Mine is located in Yelong Village, Jimu Township, Jinchuan County, Aba Prefecture, Sichuan Province. Chengxin Lithium holds mining rights for the mine and exploration rights for the Taiyanghekou Lithium Polymetallic Mine through its subsidiary-controlled company, Jinchuan Aoyinuo Mining Co., Ltd., holding 75% equity. The Yelonggou Spodumene Mine officially commenced production in November 2019, with an annual raw ore production capacity of 405,000 tonnes, equivalent to about 75,000 tonnes of lithium concentrate.

According to the latest data, the total reserves of Yelonggou Spodumene Mine reached 12.695 million tonnes, including 169,547 tonnes of Li2O resources with an average grade of1.34%. At present, the mine is still undergoing supplementary production exploration to expand the scale of the mining area's resources.

4. Yelonggou Spodumene Mine-Chengxin Lithium (Aoyinuo Mining)

The Yelonggou Spodumene Mine is located in Yelong Village, Jimu Township, Jinchuan County, Aba Prefecture, Sichuan Province. Chengxin Lithium holds mining rights for the mine and exploration rights for the Taiyanghekou Lithium Polymetallic Mine through its subsidiary-controlled company, Jinchuan Aoyinuo Mining Co., Ltd., holding 75% equity. The Yelonggou Spodumene Mine officially commenced production in November 2019, with an annual raw ore production capacity of 405,000 tonnes, equivalent to about 75,000 tonnes of lithium concentrate.

According to the latest data, the total reserves of Yelonggou Spodumene Mine reached 12.695 million tonnes, including 169,547 tonnes of Li2O resources with an average grade of1.34%. At present, the mine is still undergoing supplementary production exploration to expand the scale of the mining area's resources.

5. Lijiagou Lithium Mine: Sichuan New energy Power/Yahua Group

The Lijiagou Lithium Mine, located in Jinchuan County, Sichuan Province, ranks among Asia's largest spodumene mines. Sichuan New Energy Power Co., Ltd. holds mining rights through its controlling stake in Sichuan Energy Investment Lithium Technology Co., Ltd., which operates the mine via its subsidiary Dexin Mining. The Lijiagou project started construction in 2018 and was originally planned to be put into operation in 2020, but the production time has been repeatedly postponed due to various reasons.

According to the announcement, it obtained safety production license for mining operations in October 2024. Since the project entered the joint trial production, the project has continued to produce qualified lithium concentrate. At present, the proven reserves reached 38.81 million tonnes, including 502,200 tonnes Li2O. After the completion of the Lijiagou project, the annual output of lithium concentrate will be about 180,000 tonnes. According to the 2024 annual report, the construction project of the Lijiagou spodumene mine with an annual output of 1.05 million tonnes has undergone joint trial operation of mining, selection, tailings, and filling, and the company has started relevant exploration work to increase storage in the Lijiagou mining area.

6. Dangba Township Lithium Mine: Guocheng Mining ( Jinxin Mining)

Located in Barkam City, Aba Prefecture, Sichuan Province, the Dangba Township Lithium Mine boasts abundant reserves, high ore grades, and excellent processability, demonstrating significant development potential. Guocheng Mining Co., Ltd. announced its equity-held subsidiary Jinxin Mining had completed exploration licensing procedures and obtained exploration license issued by the Ministry of Natural Resources on June 20, 2023. On January 3, 2024, Jinxin Mining secured the Mining License for 30 years for annual production capacity of 1 million tonnes.

As of 2025, the total proven ore reserves reached 84.255 million tonnes, including 1,120,731 tonnes Li2O, with an average grade of 1.33%. In addition, the license has been valid until 2053, and the actual output in 2024 totaled 465,000 tonnes. The 5,000-tonne/day concentrator upgrade is nearing completion and core facilities (ball mill plant, flotation workshop) structurally finalized. And it's expected commissioning in H2 2025.

7. Dechelongba Lithium Mine-CATL

The Dechelongba Lithium Mine is located in the northeast of Yajiang County, Ganzi Prefecture, Sichuan Province, forming part of the renowned Jiajika pegmatite belt. It ranks as the third-largest proven lithium deposit within the Jiajika mining area. Exploration rights are held by Snowy Mining Development Co., Ltd.‌, which underwent a three-year competitive bidding process. In March 2023, CATL became the sole shareholder after completing industrial and commercial registration changes.

At present, the total ore reserves reach 24.924 million tonnes, including 293,200 tonnes of Li2O, with an average grade of 1.18%, equivalent to 724,000 tonnes of LCE. While, operations remain suspended due to previous corporate bankruptcy and equity transitions. As a fully owned subsidiary of CATL, the mine's restart timeline has not yet been disclosed.

8. Jiada Lithium Mine-Dazhong Mining

The Jiada Lithium Mine, located in Barkam City, Aba Prefecture, Sichuan Province, is being developed by Inner Mongolia Dazhong Mining Co., Ltd. The project demonstrates potential for large-to-superlarge-scale spodumene resources with significant mining value. In 2023, Dazhong Mining successfully secured the exploration rights for Jiada Lithium Mine through a Yaun 4.206 billion bid and obtained the exploration license in November 2023.

As of February 28, 2025, the mineral resources identified within a 2.06 square kilometer area of the first mining area of Jiada Lithium Mine are remarkable. Among them, the total ore reserves reached 43.436 million tonnes, including 601,000 tonnes of Li2O, with an average grade of 1.38%. If the lithium oxide resources are converted into lithium carbonate equivalent, it can reach up to 1.484 million tonnes.

III. Conclusion

Sichuan's lithium resources, though developed relatively late, boast exceptional geological endowment. With industry leaders, such as Rongjie, Tianqi Lithium, accelerating investments, the province is poised for substantial capacity expansion. Currently, Lijiagou has entered trial production, and the Dangba Township renovation and expansion project is about to be put into operation. New construction projects such as Cuola and Jiada have also entered the peak period of construction, and it is expected that the self-sufficiency rate of domestic lithium concentrate will significantly increase after 2025. It should be noted that mining areas in Sichuan generally face challenges such as underdeveloped infrastructure and stringent environmental regulations protection requirements, and the rate of capacity ramp up may be slower than expected. With the advancement of technology and the deepening of industrial chain synergy, China's lithium resource development is expected to play a more critical role in the global supply chain.