China’s C&D Begins Construction of Major Lithium Carbonate Plant in Sichuan

Xiamen C&D

$144 Million Investment to Boost Battery-Grade Lithium Supply for EV Industry by 2027

Xiamen C&D, a Chinese state-owned conglomerate, has launched construction of a large lithium carbonate production facility in Dazhou, Sichuan province, in partnership with Jiangxi Kexiang Enterprise Management. The new project targets China's fast-growing electric vehicle (EV) supply chain, with a projected total capacity of 140,000 tons per year of battery-grade lithium carbonate.

The project, valued at 1.05 billion yuan ($144 million), will be developed in three phases. The first phase, expected to produce 40,000 tons per year, is scheduled to begin operations by the end of 2025. Full-scale production is planned for completion by 2027, reflecting China's continued investment in core battery materials infrastructure.

Lithium Carbonate Capacity Expands Amid EV Boom

Lithium carbonate remains a critical raw material for lithium-ion batteries, which power the majority of electric vehicles globally. China, as the world’s largest EV market, continues to increase domestic production to reduce reliance on imports and stabilize raw material prices.

Alongside this project, other major players like Zhejiang Zhongneng have also ramped up output. On February 17, the company launched its new facility in Shaoxing, Zhejiang province, with an initial capacity of 10,000 tons per year.

However, experts warn that rapid capacity expansion across China may be outpacing demand. Oversupply could continue to weigh on lithium carbonate prices, which have already declined from their 2022 highs. Despite this, long-term fundamentals remain strong as EV adoption continues worldwide.