China's Lithium Battle Intensifies... Exploration Rights Starting at 100 Million KRW Auctioned for 190 Billion KRW
Rapid Growth of Electric Vehicle Market Drives Surge in Lithium Demand
Fierce Battle with Over 3,400 Bids in Intense Competition
The rapid growth of the electric vehicle market has intensified the competition for lithium acquisition in China.
According to Pengpai News on the 12th, the exploration rights for the lithium mine in Lijia Gou, Jinchuan County, Sichuan Province, started at 570,000 yuan (approximately 105 million KRW) on the 9th and, after 3,412 bidding rounds, were sold for about 1.01017 billion yuan (185.4 billion KRW), approximately 1,800 times higher. A state-owned enterprise in Sichuan Province secured the exploration rights.
On the same day, the auction for the exploration rights of the lithium mine in Jada, Maruikang City, Sichuan Province, began, but the owner has not yet been determined due to ongoing bidding competition. The starting price was 3.19 million yuan (approximately 590 million KRW). It has currently increased about 940 times. It is reported that major Chinese battery manufacturers, including CATL (Ningde Shidai), the world's number one battery company, have entered the bidding in large numbers.
China's electric vehicle market is growing the fastest in the world. Accordingly, the competition to secure lithium, a key material for electric vehicle batteries, is becoming increasingly fierce. Local media unanimously reported that this auction is an example showing how intense the competition is.
China's new energy vehicles (electric vehicles, hybrid vehicles, hydrogen vehicles) sold 6.887 million units last year, supported by government promotion policies. This was a 93.4% surge compared to the previous year. The sales volume accounted for 61.2% of the world's new energy vehicle sales.
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BYD, China's leading electric vehicle company, sold 1.86 million units last year alone, surpassing Tesla to become the world's top seller of new energy vehicles. BYD's sales last month were 262,161 units, a 61.3% increase compared to the same month last year, marking the highest monthly sales ever. The Chinese automotive industry forecasts that domestic new energy vehicle sales will reach 8.5 to 9 million units this year and increase to 12 million units by 2025.
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