SHANGHAI, Mar 16 (SMM) -  According to Tianqi Lithium's preliminary calculations, its lithium concentrate output and sales soared about 39% and 56% respectively on a year-on-year basis from January to February this year, and revenues from lithium concentrates surged 366% year-on-year. The company estimated that the operating income from lithium compounds and its derivatives increased by about 492% year-on-year from January to February.

Tianqi Lithium said that the imbalance between the supply and demand of lithium products will become increasingly prominent in 2022 due to the significant growth in demand and sales of downstream new energy vehicles. As a result, the sales prices of Tianqi Lithium's main lithium salt products have risen rapidly, and the supply is in shortfalls.

Earlier, Sinolink Securities predicted that there would be a supply gap of lithium ore in 2022 and 2023 and did not see this shortfall to be greatly alleviated in 2024 and 2025. Sinolink Securities expected this round of supply-demand imbalance to last longer than expected and was still bullish on investment opportunities in lithium sector.

Jiang Weiping, chairman of Tianqi Lithium, said at this year's Two Sessions that, given the relatively insufficient supply of lithium raw materials in China and the heavy dependence on imports, Sichuan should speed up the green development of lithium ore resources in order to further safeguard China's security on the supply chain of important strategic resources.

Jiang Weiping said that west Sichuan is rich in lithium ore resources. According to the statistics of the Ministry of Natural Resources, hard rock lithium ore in Sichuan accounts for 57% of China’s total lithium ore resources, ranking first in the country.

Jiang Weiping said that Gyabjeka deposit in Ganzi Prefecture, Sichuan is the largest microcrystalline spodumene deposit in China, which has a proven lithium resource reserves of 1.89 million mt and high ore grade.

The Lijiagou spodumene mine in Jinchuan County, Aba Prefecture, Sichuan has proven lithium resource reserves of about 512,100 mt.