How is lithium chloride produced in China and what are the main cost drivers?
China's lithium chloride production is dominated by the carbonate route, where Li2CO3 or LiOH reacts with 30% hydrochloric acid to form a near-saturated LiCl solution. BaCl2 removes sulfate impurities, pH is neutralized with LiOH, and spray drying yields anhydrous LiCl. Alternative routes include sulfate conversion using Li2SO4 and NaCl, direct neutralization of LiOH with HCl, and ion-adsorption methods using aluminum-based adsorbents. The carbonate route remains the industrial standard in China, while the hydroxide route offers higher purity potential. Cost structures are heavily tied to lithium feedstock prices, which have been volatile. With Ganfeng Lithium holding 32,000 tonnes of lithium chloride capacity and its Mariana project in Argentina producing 20,000 tonnes per year of lithium chloride, supply is increasingly linked to brine operations where conversion to carbonate adds an extra processing step.
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