Suining has leveraged its first-mover advantage in the lithium battery industry, attracting leading enterprises across the industrial chain to strengthen and expand its ecosystem. The city has emerged as a key hub for lithium battery production in Sichuan Province.
A lithium ore mined from Australia’s Greenbushes spodumene deposit is shipped as lithium concentrate to Jiangsu ports before being transported to Suining, Sichuan, where it is processed into lithium carbonate for the battery supply chain. This is one of the production routes of TIANQI LITHIUM (SZ:002466, HK:09696), which continuously delivers vast lithium resources to Suining, fueling the region’s booming lithium battery and new energy sector.
The efficiency of Suining’s lithium battery industry is remarkable. A prime example is the "wall-sharing effect"—TIANQI LITHIUM’s battery-grade lithium carbonate products are directly supplied to neighboring Sichuan Yuneng New Energy Battery Materials Co., Ltd. ("Sichuan Yuneng"), which then produces lithium iron phosphate (LFP) cathode materials for nearby Sichuan Xiangyuan New Energy Co., Ltd. to manufacture cylindrical lithium batteries.
Led by TIANQI LITHIUM, Suining has established a full-lifecycle lithium battery industrial cluster, earning its reputation as the "Lithium Capital."
**The Rise of the Lithium Vision** As TIANQI LITHIUM and other lithium enterprises expand, Suining’s blueprint for becoming the "Lithium Capital" has grown clearer. By the end of 2024, Suining’s lithium battery and new energy sector comprised 53 large-scale enterprises, generating an industrial output of approximately 67 billion yuan—accounting for a quarter of Sichuan’s total lithium battery industry and serving as a core driver for the province’s ambition to build a world-class lithium battery production base.
As the core zone of the "Lithium Capital," Shehong has attracted top industry players such as Shenzhen Chengxin Lithium Group, Fulin Precision, and Sichuan Road & Bridge, hosting 39 lithium-related enterprises and over 50 industrial projects. The region has built a full-lifecycle lithium battery industrial cluster and ecosystem, earning recognition as a national specialized industrial cluster for SMEs. Shehong is the only county in China designated as a provincial and national lithium battery industry chain leader and boasts the largest lithium material production base in the Sichuan-Chongqing region.
As Sichuan’s first flagship chain leader, TIANQI LITHIUM has evolved from a small factory into a global powerhouse integrating upstream and downstream operations. The company is among the few worldwide with access to both high-quality lithium mines and salt lake brine resources, achieving 100% self-sufficiency in lithium supply. Its current lithium chemical production capacity stands at 91,600 tons annually, with planned expansions bringing the total to 122,600 tons. Its product line includes battery-grade and industrial-grade lithium carbonate, lithium hydroxide, lithium chloride, and lithium metal, catering to diverse end markets.
With the rise of China’s new energy vehicle (NEV) sector, TIANQI LITHIUM has partnered with automakers and entered the supply chains of global NEV leaders. Its clients include major battery manufacturers, material producers, NEV companies, multinational electronics firms, and glass makers.
Suining’s lithium vision traces back to the 1990s. In 1992, the state-owned Shehong Lithium Salt Plant built its first lithium carbonate factory, marking the inception of central Sichuan’s lithium industry. In 2004, the plant transitioned to private ownership and was renamed TIANQI LITHIUM, eventually becoming a local industry leader. By 2010, the company listed on the Shenzhen Stock Exchange, setting the stage for its global influence.
Suining quickly recognized the potential of lithium batteries and systematically developed the sector. In 2013, it established Sichuan’s only lithium battery industrial park—Shehong Lithium Battery High-Tech Industrial Park. By 2019, the city was named "Lithium Capital" by the China Nonferrous Metals Industry Association. In 2022, Sichuan designated Suining as a "modernization demonstration city and Lithium Capital" in the Chengdu-Chongqing economic zone.
At the 2025 Suining International Lithium Battery Industry Conference, Lin Shucheng, Vice Chairman of the Sichuan Provincial Committee of the Chinese People’s Political Consultative Conference, highlighted Suining’s role as a key lithium battery hub, leveraging its industrial ecosystem and leading enterprises.
**Full Industrial Chain Development** Shehong has built a comprehensive lithium battery lifecycle chain—from resource extraction and materials to battery production, end-use applications, and recycling—becoming one of the most integrated lithium industrial zones in western China.
In 2016, Shengtun Group and Shenzhen Chengxin Lithium joined the Shehong Lithium Battery High-Tech Industrial Park. In 2022, Mining and Metallurgy Group and Shudao Group signed agreements to invest in a 20,000-ton ternary cathode material project in Shehong, expected to generate 30 billion yuan in annual output.
Shehong authorities noted, "Over 30 years, we supported TIANQI LITHIUM in acquiring global lithium resources and attracted Shengtun Group, fostering a cluster of leading lithium enterprises. Today, Shehong boasts a full lithium lifecycle industrial chain."
Suining has positioned lithium batteries as its top priority for industrial revitalization, designating Shehong as the core zone, Anju as the leading zone, and Pengxi as the expansion zone. The city employs a "circle-chain strategy" to build an ecosystem covering resources, materials, applications, and recycling, fostering a "leader-supporter" industrial cluster.
- **Upstream**: TIANQI LITHIUM and Shenzhen Chengxin Lithium control about 11% of global lithium resources, collaborating with lithium-rich regions like Ganzi and Aba to establish a secure supply system. Suining’s lithium salt capacity reached 80,000 tons in 2024, accounting for 7% of China’s total output. - **Midstream**: The region hosts leading firms like Sichuan Yuneng and Sichuan Lithium Source, forming China’s largest LFP production base with 460,000 tons of annual capacity (18% of national output in 2024). It also produces 170,000 tons of precursor materials annually (7.5% of national output) and 100,000 tons of anode materials. - **Downstream**: Suining introduced battery makers like SVOLT and Tianjin New Energy, achieving 22GWh in power battery capacity and 500 million consumer batteries annually. Shukuang Huanli launched Sichuan’s first full-process lithium battery recycling project, handling 20,000 tons of used batteries yearly.
Shehong plans to focus on solid-state and sodium-ion batteries, further strengthening its lithium industrial chain.
**Digital Transformation** Digitalization and emerging industries are reshaping Suining’s lithium sector. The city promotes industrial digitization, with over 90% of large-scale enterprises adopting cloud solutions in 2024. It is developing a digital economy, supporting data annotation and IoT firms, and establishing a provincial digital economy industrial park.
Shehong has hosted the "Lithium Capital" Industrial Ecosystem and Supply Chain Conference for three consecutive years, launching China’s first lithium industry big data platform and development index (Suining Index). The "Lithium Expert" mini-program provides professional lithium battery services.
TIANQI LITHIUM established a Digital Strategy Committee in June 2024 to advance its digital transformation. The company focuses on smart manufacturing, financial integration, and cybersecurity, aiming to build sustainable green smart factories and mines.
**Aiming for 200 Billion Yuan** Suining targets a 200 billion yuan economic goal by 2025, focusing on lithium batteries, food and beverages, and petrochemicals as its three pillar industries. The city aims to strengthen its "5+1+N" modern industrial system: 1. **Lithium Battery New Energy**: Consolidate LFP advantages, explore solid-state battery materials, and improve industrial ecosystems like futures delivery and testing. 2. **Food and Beverage**: Enhance meat processing and liquor production, increasing value-added products. 3. **Petrochemicals**: Boost oil and gas resource utilization and local processing. 4. **Electronics**: Upgrade technology and expand production capacity. 5. **Equipment Manufacturing**: Extend supply chains for automotive parts and high-end products.
Suining is also advancing digital economy initiatives and strategic emerging industries, optimizing resource allocation to foster high-quality industrial development.
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