Over the past few years, interest in lithium has witnessed significant growth, with this metal now one of the most in-demand non-food and non-organic commodities worldwide. For the most part, the demand for lithium has been driven by a rise in the production of electric vehicles (EVs) and energy storage solutions.
It therefore comes as no surprise that this metal has been dubbed ‘white gold’ due to its high price, limited availability, and wide usage in the manufacture of expensive products ranging from batteries to high-speed train components.
The value of the lithium-ion battery market alone is expected to grow four times from US$66 billion in 2021 to US$274 billion by the end of this decade as a result of a spike in the demand for electric vehicles on the global market.
Global output of lithium carbonate – a chemical compound that is used in lithium-ion battery manufacturing – surged during the last five years, from 82,000 metric tons (MT) in 2020 to 240,000 MT in 2024 representing an increase of 192%
What is the role of lithium in the global economy?
Lithium is used in multiple industries ranging from energy storage to medical equipment.
The use of lithium for rechargeable batteries has seen a strong increase in the last few years, which can be explained by the continual increase in demand for EVs, portable electronics, power tools, and energy storage systems.
This metal is also used to manufacture laptops, digital cameras, smartphones, and other electronic devices. However, it also serves many other important purposes that are not widely known to the public:
- Lithium is used to make more durable and lightweight alloys when combined with other metals. These are used in many sectors including the transport industry (high-speed trains, aircrafts, etc.)
- Lithium hydroxide is a component of lubricating greases and makes these become water and oxidation-resistant
- Lithium oxide is employed in glass ceramics
- Lithium chloride has applications in air conditioning
Each year, industries across the world consume an impressive amount of more than 100,000 tons of lithium. So, where does it come from?
Global lithium production
Lithium mine production worldwide increased by 18% and hit a record 240,000 metric tons in 2024, according to the United States Geological Survey. Last year’s production was nine times higher than in 2010, when it stood at 28,100 metric tons.
This spectacular increase can be attributed to several factors, including:
- Constantly growing demand from the lithium-ion battery market
- Increase in worldwide lithium output capacity.
Source: Statista
The major players in the lithium production industry today
The largest lithium reserves on the planet are located in Chile and Australia and these two countries are the largest lithium producers. China, Zimbabwe, and Argentina fill in the TOP 5 ranking. The United States of America does not disclose lithium production data.
Lithium production by country
*e – Estimated
*W – Withheld to protect confidential company information
Source: U.S. Geological Survey, Mineral Commodity Summaries, January 2025
Australia, Chile and China together account for almost 75% of today’s global lithium production.
Five leading lithium producers in the world
1. Australia – the largest lithium producer in the world: 88,000 MT
Australia is still the top lithium-producing country despite a 4% decrease in output in 2024. Last year, the country produced an estimated 88,000 metric tons of lithium which was 3,000 less than in 2023. One of the reasons for this decrease is lower demand for the EV market. With less lithium being produced, prices subsequently fell.
The main source of Australian lithium is spodumene, a pyroxene mineral which is derived from several lithium mines such as:
- The Greenbushes Mine
Operated by Talison Lithium, this mine registered an output of 798,000 tons of spodumene concentrate (a lithium aluminum silicate) in the 2024-2025 financial year, according to Australia Mining.
- Kathleen Valley Mine
Owned by Liontown Resources, this lithium mine opened in July 2024 and by the end of Q1 2025, it is expected that the mine will produce about 500,000 MT of spodumene concentrate. The mine is scheduled to expand in the sixth year of its operations with the output expected to increase to 700,000 MT annually.
Based on figures from GlobalData, Australia’s output of lithium is expected to increase dramatically, hitting 116,240 MT in 2026, and this is mainly due to the expansions of mines as the demand for the metal increases.
2. Chile: 49,000 MT
Chile’s level of lithium production has seen impressive growth, from 41,000 MT in 2023 to an estimated 49,000 MT in 2024. Interestingly, Chile extracts lithium from brine deposits, whereas Australia from hard-rock mines.
Vast reservoirs must evaporate in order to extract lithium concentrate from brine water. This procedure could take over a year, whereas hard-rock lithium is easier to discover, mine, and process utilizing non-ore-specific, low-cost mining techniques as used in Australia.
Chile is part of the so-called Lithium Triangle which also includes Bolivia and Argentina. Several large salt pans are located along the Atacama Desert and nearby arid regions. These include Salar de Uyuni in Bolivia, Chile’s Salar de Atacama, and Salar del Hombre Muerto in Argentina.
SQM and Albemarle are the nation’s largest lithium-producing enterprises, but that might soon change after Chile shocked the market in April 2023 by declaring its intention to nationalize its lithium sector.
3. China: 41,000 MT
This Asian nation’s lithium supply showed a slight increase from 37,500 MT in 2023 to 41,000 MT the following year.
China is the largest consumer of lithium which is mainly due to the continual growth of the electronics manufacturing and EV industries over the last few years. Annually, Chinese industries consume tens of thousands of tons of lithium.
China produces more than 70% of all EV batteries with major manufacturers such as CATL and BYD spurring innovation thanks to centralized knowledge within the battery industry.
Intense local competition has defined China’s battery industry, which today is comprised of almost 100 producers.
Moreover, the country is home to the vast bulk of the world’s facilities for processing lithium. While it currently imports a sizable portion of its lithium from Australia, one of its objectives is to greatly increase domestic output of this metal.
4. Zimbabwe: 22,000 MT
In 2024, Zimbabwe’s lithium production boomed, increasing by over 5 thousand tons, from 14,900 to 22,000.
Until recently, the majority of Zimbabweans were ignorant of lithium’s vital significance in the international car industry. However, according to the African Policy Research Institute, when a Chinese mining company bought a lithium mine for US$500 million in December 2022 which led to ‘lithium fever’, this situation changed.
Chinese companies have recently shown a great deal of interest in Zimbabwe and other African nations that produce lithium.
For instance, China’s Sinomine Resource Group has acquired Zimbabwe’s oldest lithium mine – the Bikita mine.
Another Chinese company, Zhejiang Huayou Cobalt and Tsingshan Group, has announced intentions to research and construct a lithium mining and processing facility in Sandawana in Zimbabwe’s southern region.
The latest data shows that the country registered an output of 22,000 MT, which is a massive increase from 2022 when the level of production stood at just 800 MT. The level of lithium production in the period between 2023 and 2024 saw a significant surge with a year-on-year increase of 47%.
According to information provided by the U.S. Geological Survey, the country’s lithium reserves have also seen an increase from 310,000MT in 2023 to an estimated 480,000MT in 2024.
5. Argentina: 18,000 MT
Argentina’s lithium mining industry has shown an impressive increase in production of over 100%, from 8,630 MT in 2023 to 18,000 MT in 2024.
The country’s Salar del Hombre Muerto area has huge lithium brine deposits that will last for a minimum of 75 years. So far, there are no indications that Argentina’s lithium mining will slow down. According to Mining.com – one of the largest sources of information on mining – there are currently six lithium operations in the country.
Furthermore, experts anticipate that this country has the potential to increase its lithium production tenfold in just a few years.
An increasing number of investors are eyeing Argentina because the country forms part of the so-called Lithium Triangle, which also includes Bolivia and Chile.
Top five world’s largest lithium mines currently in operation
There are more than 34 lithium mines operating in the world today. The data below shows the five largest by production (in million tons of lithium ore per annum, mtpa).
1. Greenbushes lithium operations
Location: Western Australia, Australia.
- Owned by: Talison Lithium (A joint venture arrangement between Tianqi Lithium Corporation (China)/IGO Limited JV (Australia) and Albemarle Corporation (United States)
- Produces: 0.21 mtpa (2024)
- Estimated operation time: until 2039
2. Salar de Atacama mine
Location: Antofagasta, Chile
- Owned by: State
- Produces: 0.16 mtpa (2023)
- Estimated operation time: until 2030
3. Wodgina mine
Location: Western Australia, Australia
- Owned by: Albemarle Corporation
- Produces: 0.055 mtpa (2023)
- Estimated operation time: until 2053
4. Salar de Atacama mine (Albemarle Corporation)
Location: Antofagasta, Chile
- Owned by: Albemarle Corporation
- Produces: 0.052 mtpa (2023)
- Estimated operation time: until 2043
5. Mount Marion
Location: Western Australia, Australia
- Owned by: Ganfeng Lithium Group (China)
- Produces: 0.046 mtpa (2023)
- Estimated operation time: until 2047
How is lithium produced?
Does lithium open the door to an eco-friendlier future? (Spoiler: not really)
Resource exploitation of any kind is bad for the environment since it can lead to soil degradation, water shortages, ecosystem damage, and biodiversity loss.
Here are some of the impacts that lithium mining brings:
- Large-scale water consumption and associated pollution (to create one ton of lithium, about 2.2 million liters of water are required)
- Rise in carbon dioxide emissions due to extraction techniques
- Substantial increase in the generation of mineral waste
- Greater respiratory issues for surrounding communities
- Alteration of the hydrological cycle (when evaporation and precipitation are affected)
Studies conducted by the automotive consultant Berylls Strategy Advisors showed that the production of each battery (which may weigh up to 500 kilograms) for sport-utility cars generates up to 74% more carbon dioxide than the manufacture of a conventional vehicle if it is made in a fossil fuel-powered factory in a country like Germany.
Is there anything we can do?
Making investments in lithium battery alternatives is one way to solve the problem. Experts advise looking out for the so-called solid-state batteries as well as sodium-ion batteries. At the end of 2022, the Chinese battery producer CATL announced plans to start mass production of sodium-ion batteries.
In addition, by the end of 2023, CATL and Chinese car manufacturer BYD look forward to using sodium-ion batteries in electric vehicles. However, these will initially be powered by a combination of lithium-ion and sodium-ion batteries.
Other steps that can be taken include:
- Recycling and investing in cutting-edge mining techniques for lithium extraction can reduce water and energy consumption as well as cut the amount of waste produced by mining
- Extending the battery lifespan can reduce the amount of lithium mined
- This can be complemented by the establishment of rigorous environmental laws and guidelines for lithium mining operations
Final word
With few to no alternatives expected in the foreseeable future, lithium remains the main ingredient used to make batteries for electric vehicles (EVs). Around 90% of all lithium today is extracted in Australia, China, and a few countries in Latin America, and production levels are steadily increasing along with the demand for EVs.
At the same time, lithium mining degrades soil and requires an excessive amount of water, seriously harming ecosystems. There are several steps that can be taken to address the problem, such as looking for alternatives to or extending the life of lithium-based batteries, and making investments in technology that could reduce the amount of power and water used during mining.
