BUSINESS

Qinghai Salt Lake Industry to Acquire Peer in State-Led Lithium Push

Published: Dec. 31, 2025 2:29 a.m. GMT+8

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A Qinghai Salt Lake Industry Co. Ltd. plant in Golmud, Haixi prefecture, Qinghai province. Photo: VCG

Qinghai Salt Lake Industry Co. Ltd. is acquiring a controlling stake in a peer company from its parent group, in a state-led effort to consolidate China's expansive salt lake resources.

The Shenzhen-listed miner, which holds rights to China’s largest salt lake, said Tuesday it will pay more than 4.6 billion yuan ($656 million) in cash for a 51% stake in Minmetals Salt Lake Co. Ltd. from China Salt Lake Industry Group, the parent of both firms.

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Qinghai Salt Lake Industry will acquire a 51% stake in Minmetals Salt Lake for over 4.6 billion yuan, aiming to consolidate China’s salt lake resources.
Minmetals Salt Lake produces lithium and potash but saw a drop in 2025 profits; China Salt Lake Industry Group guarantees future profit targets.
Qinghai Salt Lake Industry’s revenue rose 6.3% and net profit 43.3% in the first three quarters of 2025; domestic lithium prices surged 55% year-on-year.

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Who’s Who

Qinghai Salt Lake Industry Co. Ltd.: Qinghai Salt Lake Industry Co. Ltd. (青海盐湖工业股份有限公司) is a Shenzhen-listed miner with rights to China's largest salt lake. It is acquiring a 51% stake in Minmetals Salt Lake Co. Ltd. for over 4.6 billion yuan to consolidate salt lake resources, expand its control over potassium and lithium, and enhance its market influence. For the first three quarters of 2025, it reported 11.11 billion yuan in revenue and 4.5 billion yuan in net profit.

Minmetals Salt Lake Co. Ltd.: Minmetals Salt Lake Co. Ltd. holds mining rights to the Yiliping salt lake and produces lithium carbonate, lithium phosphate, lithium hydroxide, and potash fertilizer. Qinghai Salt Lake Industry Co. Ltd. is acquiring a 51% stake in it for over 4.6 billion yuan. The company reported weaker performance in 2025, but its parent company guarantees specific net profits for 2026-2028.

China Salt Lake Industry Group: China Salt Lake Industry Group, formed in October 2024, is consolidating China's salt lake resources. It is the parent company of Qinghai Salt Lake Industry Co. Ltd. and Minmetals Salt Lake Co. Ltd. The group guarantees Minmetals Salt Lake's net profits for 2026-2028, reflecting its commitment to sector development.

China Minmetals Corp.: China Minmetals Corp. previously held a 51% stake in Minmetals Salt Lake Co. Ltd. This stake was later consolidated into China Salt Lake Industry Group, which was formed in October 2024 to centralize key assets in China's salt lake industry.

Contemporary Amperex Technology Co. Ltd.: Contemporary Amperex Technology Co. Ltd. (CATL) is an industry giant whose mine suspension contributed to the sharp rebound in China's domestic lithium prices during the second half of 2025. This, along with eased competition and strong overseas demand, drove lithium carbonate futures up by 55% from the previous year.

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What Happened When

October 2024：: China Salt Lake Industry Group was formed to consolidate key assets across the salt lake sector.

December 30, 2024：: Lithium carbonate futures on the Guangzhou Futures Exchange referenced for year-over-year price comparison.

Between January 2025 and August 2025：: Minmetals Salt Lake posted nearly 800 million yuan in revenue and 316 million yuan in net profit.

By first three quarters of 2025：: Qinghai Salt Lake Industry reported revenue of 11.11 billion yuan (up 6.3% YoY), and net profit of 4.5 billion yuan (up 43.3% YoY).

Second half of 2025：: China’s domestic lithium prices rebounded sharply.

December 30, 2025：: Qinghai Salt Lake Industry announced it will pay more than 4.6 billion yuan for a 51% stake in Minmetals Salt Lake; the deal is still subject to shareholder approval as of this date.

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