[SMM Analysis] Guocheng Lithium Project Phase I Nears Trial Production

Published: Mar 31, 2026 21:25

The 200,000-ton-per-year lithium salt project by Guocheng Lithium is planned for construction across three phases. Upon full completion, it will become the largest single-site lithium salt production base in China. The project is of great significance to ensuring the security and stability of the country’s lithium battery industry supply chain.

Currently, the first phase, a 60,000-ton-per-year battery-grade lithium carbonate project, is accelerating its civil works finalization, with mechanical and electrical installation over 90% complete and equipment commissioning now underway. Mechanical completion is expected in April, with trial production set to begin simultaneously.

Lithium ore is transported from the Dangba mining area in Barkam by road, covering over 300 kilometers to the Deyang-Aba Industrial Park in Mianzhu. The mining area is the largest proven spodumene deposit in Asia, with accumulated identified ore reserves of 84.255 million tons, lithium oxide resources exceeding 1.12 million tons, and an average grade of 1.33%.

Within the Deyang-Aba Industrial Park, the first-phase plant facilities are largely finished, and equipment commissioning is in full swing. According to Sichuan Guocheng Lithium, mechanical completion for the phase is scheduled for the second quarter, at which point trial production will commence. Other similar projects, including those by Sichuan Development Longmang New Materials and Fuling Precision, have also broken ground in the park.

Guocheng Lithium stated that once operational, these projects will create clustering effects in the park. Leveraging the park’s location advantages and circular economy foundation, upstream and downstream enterprises will engage in deep cooperation in areas such as byproduct utilization and technology R&D to build a lithium battery materials industrial ecosystem.

The Deyang-Aba Industrial Park is rapidly emerging as a key national hub for new energy battery materials. According to park authorities, based on current industrial capacity, projects under construction and in operation can achieve an annual output of 150,000 tons of basic lithium salts and 420,000 tons of cathode materials, positioning the park as a critical upstream supply base for lithium battery materials in China. Over the next three years, the park plans to invest 1.59 billion yuan in 20 infrastructure projects, including road construction, power facilities, emergency response systems, and pipeline and channel upgrades, aiming to enhance industrial carrying capacity and accelerate its integration into the provincial-level advanced manufacturing cluster for lithium battery materials in the Chengdu-Deyang-Meishan-Ziyang region.

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[SMM Analysis] Guocheng Lithium Project Phase I Nears Trial Production - Shanghai Metals Market (SMM)