Qinghai Salt Lake Industry Co., Ltd. (hereinafter referred to as "Salt Lake Industry", stock code: 000792) and its core subsidiary **Qinghai Salt Lake Lithium Co., Ltd.** (hereinafter referred to as the company) have established an industrial pattern of "parent company coordination and subsidiary specialisation" in the vast Qarhan Salt Lake in Qinghai. Relying on the advantage of salt lake resources in the region, they have formed the leading domestic competitiveness of potash fertiliser and lithium salt industry. Their products are sold in markets such as South-east Asia and Europe, and they are an important force in pushing China’s salt lake chemical industry to the world stage.
Equity Links: Salt Lake Industry Controls Core Lithium Salt Platform Qinghai Salt Lake Lithium Co., Ltd.
Qinghai Salt Lake Lithium Co., Ltd. was established in March 2007 as a holding subsidiary of Salt Lake Industry, and is a benchmark enterprise in the domestic salt lake lithium extraction industry. Its equity structure is simple: Salt Lake Industry holds 51.42% stake (directly and indirectly), making it the absolute controlling shareholder, while Keda Industrial Group holds 43.58%, creating a mixed-ownership model with state-controlled and private-sector participation.
Qinghai Salt Lake Lithium Co., Ltd. is the sole core operating entity of Salt Lake Industry’s lithium business, focusing on R&D of lithium extraction technologies for high magnesium-to-lithium ratio salt lakes and the production of lithium salt. But the parent company Salt Lake Industry is centred on the joint management of five large chemical sections including potash, lithium, magnesium, soda ash and chlor-alkali, which makes the division of labour clear. The parent company is responsible for the entire chemical operation and the subsidiary is mainly responsible for lithium salts.
Production Capacity and Technology: Qinghai Salt Lake Lithium Co., Ltd.’s 40,000-Ton Capacity Is the First in the Salt Lake Lithium Extraction Industry
Qinghai Salt Lake Lithium Co., Ltd. has cracked the world problem of extracting lithium from salt lakes with a high magnesium-to-lithium ratio, with 12 million tonnes of lithium chloride reserves in the Qarhan Salt Lake, a world-class salt lake that is difficult to process with a magnesium-to-lithium ratio of up to 500:1. It did this using proprietary nano-layered adsorbents and coupled adsorption-membrane separation extraction technology.
By June 2026, Qinghai Salt Lake Lithium Co., Ltd.’s lithium carbonate production capacity has increased to 40,000 tonnes per year, ranking it as the largest domestic salt lake lithium extraction enterprise and the third largest in China’s overall lithium industry. The main product is battery-grade lithium carbonate (≥99.7% purity), and various lithium products such as lithium chloride, lithium hydroxide and lithium metal are produced, which are widely applied in new energy industries such as power batteries, energy storage batteries and cathode material production.
Continuous technological progress: a new generation of "continuous ion exchange moving bed + membrane coupling" technology has been adopted, the lithium recovery rate increased to above 90% and the cost per tonne reduced to 34,000-36,000 RMB, further enhancing the technological and cost advantages.
Export strategy: The overseas expansion of the parent company and its subsidiary is different
(i) Qinghai Salt Lake Lithium Co., Ltd.: The focus of lithium salts is domestic direct supply, and the export of high-end products is limited.
Qinghai Salt Lake Lithium Co., Ltd. supplies more than 90% of its products to the domestic market, and has long-term cooperation agreements for direct supply to leading battery manufacturers including CATL, BYD and Gotion High-Tech.
Battery grade lithium carbonate of high purity is sold in small quantities to overseas battery manufacturers including LG Energy Solution and Panasonic under long-term contracts. Exports account for less than 10% of total sales. The high-end new energy raw material market has high added value and high technological barriers to entry.
(ii) Salt Lake Industry: Potash fertiliser secures domestic supply while soda ash, magnesium-based products and PVC are key export drivers.
Salt Lake Industry is the largest producer of potash fertiliser in China, and its potassium chloride (potash fertiliser) products are given priority for domestic supply. At the same time, it meets the needs of the national potash reserves and does not export this product, thus providing for the national agricultural production. Its principal exports are divided into three categories: soda ash, magnesium products and PVC. Export value hit RMB 560 million in the first seven months of 2025, up threefold year-on-year:
Soda ash (sodium carbonate): Exported to South-east Asian countries including Malaysia, Vietnam and Thailand for use in the manufacture of photovoltaic glass and flat glass; exports totalled RMB 110 million in the first seven months of 2025, up 1.9 times year-on-year.
Magnesium products (magnesium oxide, magnesium ingots): Exported to Europe and South-east Asia for use in metallurgy and construction material industries. Exports in the first seven months of 2025 reached RMB 200 million, up 5.3 times from the previous year, the fastest growing export category.
PVC (Polyvinyl Chloride): Successfully launched in the Vietnamese market in May 2026, establishing a regular export volume of 1,000 tons/month to directly supply the construction material market in South-east Asia.
IV. Strategic Importance: Synergistic development strengthens industrial barriers and boosts "Dual Carbon" targets and resource security
The cooperation between Salt Lake Industry and Qinghai Salt Lake Lithium Co., Ltd. is a typical case of efficient utilisation of China’s salt lake resources. The parent company earns steady profits from potash fertiliser and chemical product exports and provides financial and resource support for the lithium salt business. Meanwhile, the subsidiary is committed to technological breakthroughs and capacity expansion in lithium salts and aims to capture the opportunities brought by the booming new energy industry to become the core engine for the parent company's growth.
As of the end of June 2026, the production capacity of lithium salt of Salt Lake Industry (including Qinghai Salt Lake Lithium Co., Ltd.’s 40,000-ton capacity and the 40,000-ton integrated project of the headquarters) has reached 98,000 tonnes per year, becoming the world’s largest salt lake lithium extraction enterprise. Looking ahead, the parent company and subsidiary will continue to deepen synergies between their potash and lithium operations, and expand exports of high value-added products. The strategy is to upgrade China’s salt lake chemical industry from a model of “resource export” to one of “technology and product export”, supporting the nation’s energy transition and resource security.
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Website：www.qinghai-saltlake.com
