Abstract: Lujiawan lithium deposit in Dangyang City of Hubei Province belongs to the east wing of Huangling anticline, which is a medium-size clay type lithium deposit discovered since a new round of strategic action for mineral exploration breakthrough. The variation patterns, occurrence states, and material sources of ore bodies from both vertical and horizontal views were summarized based on geological characteristics of the deposit and through petrographic identification, X-ray diffraction (XRD) test, and major/trace element chemical analyses. The results show that lithium-bearing kaolinite clay rock, lithum-bearing mudstone and lithium-bearing sandy mudstone have higher lithium content, while lithium-bearing carbonaceous mudstone is mostly low-grade lithium ore. The lithium elements is mainly hosted in minerals like kaolinite, diaspore, and boehmite. And the claystone is more conducive to the enrichment of lithum with the following coditions, which are 28%≤ω(Al₂O₃) < 40%, Al₂O₃/SiO₂ being 0.8~1.2 and ω(TiO₂)content being close to 3%. The lithium elements might originate from medium-sized magmatic rocks in Huangling anticline in the western part of the mining area, and after weathering and erosion, they combined with clay minerals to form mineralization in favorable environments. Finally, the prospecting indicators for sedimentary clay type lithium deposits in Western Hubei were proposed according to the ore-bearing strata characteristics, rock-mineral assemblages, geochemistry, and provenance characteristics, which could provide references for further exploration breakthroughs in this type of deposit in Western Hubei.