Ganfeng will set up a joint venture company in the city of Fengcheng for its latest plant, which will convert spodumene into lithium battery materials.

Battery minerals represented less than 3% of the top 40 miners' total revenue in 2020.

Government pressure and a rise in environmental, social and corporate governance investing will motivate firms to alter existing techniques, Fitch says.

Australian-listed explorers raised A$2.37 billion ($1.81 billion) in the March 2021 quarter, the most since BDO started the series in 2013.

Minmetals use of direct lithium extraction is seen as a first step in the development of domestic lithium resources.