China eyes coal waste as new source of critical metals for EVs, chips and defence industries

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China is exploring how coal waste could become a new domestic source of critical metals used in batteries, semiconductors, electric vehicles and defence-related industries, as the country moves to secure supplies of strategic raw materials.

A recent report said fly ash and gangue produced during coal mining, washing and combustion may hold recoverable amounts of germanium, aluminium, lithium and gallium. These metals are used in sectors ranging from electronics and optics to energy storage, advanced manufacturing and military equipment.

The study suggested coal should no longer be treated only as an energy resource, as waste generated through mining and power generation can also contain valuable metallic elements.

Fly ash left behind after coal combustion and gangue removed during mining are usually dumped, stockpiled or used in small volumes in construction materials.

Dai Shifeng, a member of the Chinese Academy of Sciences and professor at the China University of Mining and Technology-Beijing, said coal waste contains several metallic elements that may become an important supplementary source of critical minerals.

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China’s large coal sector and mature industrial network are seen as advantages for developing metal recovery projects. The report said existing coal washing units, chemical processing plants and thermal power facilities could potentially be modified for extraction activities instead of requiring completely new supply chains.

Another advantage is that significant volumes of coal waste are already concentrated near industrial hubs, which could reduce transportation and processing challenges.

The proposal also supports China’s broader efforts to strengthen domestic supply chains and lower dependence on imported critical minerals, especially for industries connected to electric vehicles, batteries, semiconductors and electronics.

However, the report noted that large-scale extraction remains difficult because the chemical makeup of coal waste varies between mining regions due to geological differences. As a result, metal concentrations are often inconsistent.

Coal from different mines is also commonly blended at power stations, making fly ash composition less predictable and creating further complications for standardised extraction on a commercial scale.

Despite these challenges, researchers believe rising demand for critical minerals, along with China’s experience in recovering germanium from coal-related materials, could help support future efforts to extract additional metals from industrial coal waste.

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