China Minmetals, a central government-backed enterprise, is set to take control of a provincial lithium company, aiming to expedite the development of a 'world-class' lithium extraction industry from salt lakes in western China, reported Bloomberg News.

This involves the formation of a new joint venture, China Salt Lake Group. It will be majority-owned by China Minmetals with a 53% stake and will take over Qinghai Salt Lake Industry.

The Qinghai province, which is home to numerous lithium-rich salt lakes, is poised to become a significant hub for lithium production.

The establishment of China Salt Lake Group, with a registered capital of 10bn yuan ($1.4bn), marks a strategic move by the central government to assert greater influence over the domestic lithium sector.

Qinghai Salt Lake was cited by the news agency as saying that the takeover by Minmetals will 'accelerate construction of a world-class salt lake industry base'. The company is transitioning from provincial to central government control.

The remaining shares of China Salt Lake Group will be held by two entities associated with the Qinghai provincial government.

Last month, China’s Ministry of Commerce said that it would enforce export controls on antimony and its related products.

Effective 15 September 2024, the move aims to “safeguard national security and interests, and fulfil international obligations such as non-proliferation”, stated a ministry spokesperson.

Reuters reported that China restricted antimony products such as ore, ingots, and oxides, with exporters requiring licences for dual-use items and technologies with military and civilian applications.