Xinjiang Zhicun New Energy Materials Co. Ltd, Cranking Battery-grade Lithium Production

Highlights

• Xinjiang Zhicun New Energy Materials Co. Ltd commenced operation of two kilns.
• The current daily output of lithium carbonate exceeds 100 tonnes.
• The company projects annual battery-grade lithium carbonate production of 11,000 tonnes in 2024.
• Current regional production exceeds 16,000 tonnes.
• Located in southeastern Xinjiang’s Ruoqiang County.
• The project secures lithium concentrates from domestic and international sources to meet growing battery material demand.

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Xinjiang Zhicun recently experienced an increase in battery-grade lithium production.  Published in Asian Metal portal, the company called Xinjiang Zhicun New Energy Materials Co. Ltd, commenced operation of two kilns at its 60,000tpa battery-grade lithium carbonate project situated in Ruoqiang County. Daily output bettered 100 tonnes for the first time, with monthly output reaching 3,000 tonnes.

 Lithium carbonate (Li₂CO₃) is an inorganic compound commonly used in various industrial applications. It is a white, powdery substance derived from lithium ores or brine deposits. As a versatile lithium compound, it serves as a precursor for other lithium-based chemicals and plays a crucial role in energy storage, ceramics, glass manufacturing, and rare earth element (REE) processing.

Zhicun Lithium Industry set up a new battery material company with a registered capital of 1 billion yuan] on January 9, 2022, referring to a Zhicun New Energy Materials Co., Ltd. established with injection of capital of 1 billion yuan (USD$137,733,458). The scope of business includes lithium carbonate series products, lithium cathode materials (except national special regulations) and other chemical products except R & D, production and sales.

Commencing production last year (2023), they have produced over 8,400 tonnes of battery-grade lithium carbonate thus far. Annual production is projected to hit 11,000 tonnes in 2024.  The Asian Metal piece states that atRuoqiang County, the annual battery-grade lithium carbonate production exceeds 16,000 tonnes per annum.

The Location

Ruoqiang County as the official Romanized name, also transliterated from Uyghur as Qakilik County, is a county in the Xinjiang Uyghur Autonomous Region, China, under the administration of the Bayingolin Mongol Autonomous Prefecture.

Located in southeastern Xinjiang, there are purportedly 2.8 million tonnes of lithium oxide.

Securing Supply

This year Ruoqiang County procured lithium concentrate from other domestic (China) lithium-rich locations such as Hotan and Sichuan plus imports from Australia.  They need this diversified supply to secure sufficient amounts of raw materials to produce lithium carbonate.

What is this?

Battery-grade lithium carbonate is a white, inorganic salt that’s a key component in lithium-ion batteries, which power electric vehicles and power grids. It’s also used in other applications, such as: 

• Lithium compounds: Battery-grade lithium carbonate is a precursor to lithium hydroxide and lithium fluoride, which are used to make compounds for lithium-ion batteries. 
• Glass: Lithium carbonate lowers the melting point of silica in ovenware glass. 
• Ceramics: Lithium carbonate gives color and shine to ceramics. 
• Pharmaceuticals: Lithium carbonate is used as an active pharmaceutical ingredient (API).

Battery-grade lithium carbonate must meet strict purity and quality standards. The purity and consistency of the lithium carbonate used in electrolytes affects the performance, safety, and longevity of the batteries. Battery-grade lithium carbonate is typically at least 99.5% pure. 

The demand for battery-grade lithium has increased dueto the growing popularity of electric vehicles and the shift torenewable energy. 

In summary as an end-product, lithium carbonate is widely used in ceramics and glassware, cement, industrial greases, aluminum production, and, at pharmaceutical-grade purity, as a maintenance treatment for bipolar and major depressive disorders.

What are some challenges and considerations?

Supply and cost issues are real. Lithium carbonate is in high demand due to its role in lithium-ion batteries, which can lead to supply constraints and increased costs. Plus, the mining and processing of lithium can have significant environmental impacts, including water depletion and ecosystem disruption. This raises concerns about its sustainability.