(TibetanReview.net, Jun25’25) – Local Chinese authorities in remote western Tibet’s Ngari prefecture have given regulatory approval to a major lithium extraction project there, resulting in shares of Zangge Mining, which holds a stake in it, soaring to a record high, reported yicaiglobal.co Jun 24.
The project is located in the sparsely populated Gerze County where animal husbandry – which includes the raising of yak, dzo, sheep, goats, and horses – is the locals’ main economic activity. The county also has wild yak, wild donkeys, wild sheep, bears and Tibetan antelope.
The report said shares of the Qinghai-based Zangge, a major Chinese producer of potash, lithium, and copper, rose to a historic high of 42.88 Yuan ($6) Jun 24, closing up 3% in Shenzhen.
The project is located at Mamicuo Salt Lake, roughly 84 km north of the town of Gerze, covering an area of 115 square kilometres. It is known for significant lithium and boron resources as well as other valuable minerals, besides being rich in freshwater resources as well. Construction must begin within two years. The content of lithium resources here is said to be the largest in Tibet Autonomous Region (TAR).
The total planned investment is 4.5 billion Yuan ($637 million). Using adsorption techniques to extract lithium from brine, the project aims to produce 50,000 tons of battery-grade lithium carbonate annually, along with 17,000 tons of borax as a by-product, Construction is expected to take two years, with a projected 33-year mine life, the report said.
The project company is majority-owned (57.2%) by the Jiangsu Qinghai-Tibetan New Energy Industry Development Fund Partnership, a private equity fund. Through the fund, Zangge indirectly holds nearly 27% of the project company, ranking behind only the Fifth Geological Explore Team, which owns 31.5%. The Fifth Geological is controlled by the TAR government, the report added.
Zangge’s Board Secretary Li Ruixue had told investors in 2023 that the Mamicuo Salt Lake contained around 2.5 million tons of lithium chloride, equivalent to about 2.2 million tons of lithium carbonate, with production costs controlled within 25,000 Yuan ($3,483) per ton.
However, the project’s remote location – at an altitude of around 4,700 metres – and poor road infrastructure is said to pose logistical challenges for development.
Zangge, China’s second-largest potash producer, is already extracting lithium at Qarhan Salt Lake in Qinghai province. Last year, it produced 11,600 tons of lithium carbonate, generating 1 billion Yuan in revenue, which accounted for over 31% of the company’s total income. That operation contributed 491 million Yuan ($68.4 million) in net profit, the report said, citing its latest annual report.
The Mamicuo Salt Lake project is expected to contribute significantly to China’s lithium production capacity and help meet the growing demand for lithium in the electric vehicle industry and other sectors.
Mamicuo (also known as Mami Tso or Mami Cuo) is only one of several lithium-rich salt lakes in this region; the other being those such as Laguocuo and Zhabuye.