The Global Lithium Supply Landscape: Who's Leading the Battery Revolution?

The world’s hunger for lithium shows no signs of slowing. With the electric vehicle sector and energy storage systems driving unprecedented demand, the question isn’t whether supply will matter—it’s whether production can keep pace with consumption.

Why Lithium Matters More Than Ever

Nearly 80 percent of global lithium output flows directly into battery production, making it the lifeblood of the EV revolution. Beyond batteries, ceramics and glass consume 7 percent, while lubricating greases claim another 4 percent. The growth trajectory is staggering: rechargeable batteries in portable electronics, EVs, grid storage, and industrial tools have fundamentally reshaped how much lithium the world needs.

Manufacturers typically employ lithium carbonate or lithium hydroxide in modern batteries, combined with critical metals like cobalt, graphite, and nickel. This diversified composition means global supply chains depend on coordinated production across multiple commodities.

Market Volatility and Long-Term Tailwinds

The 2024 market proved turbulent. Lithium carbonate prices dropped 22 percent amid an oversupply glut, while production capacity outpaced demand recovery. Yet analysts project the surplus could narrow dramatically—from 84,000 metric tons to just 33,000 MT—if proposed production cuts materialize.

Looking ahead, demand is set to soar. Benchmark Mineral Intelligence forecasts more than 30 percent year-on-year growth in battery and energy storage sectors during 2025 alone. Meeting this surge requires an ambitious agenda: up to 150 new battery factories and US$116 billion in capital investment by 2030 to prevent critical shortages. China is poised to dominate expansion, though the European Union and United States are emerging as growth frontrunners.

Production Reality: The Numbers Behind the Headlines

Global lithium production rose significantly in recent years, reaching 240,000 MT of lithium content in 2024 compared to 204,000 MT in 2023. This represents a meaningful acceleration, though challenges persist. Worldwide mining is projected to grow at a 7.2 percent compound annual growth rate through 2035—critical for meeting the next decade’s explosive demand.

Who’s Producing Lithium Today?

Australia Dominates but Faces Headwinds

Australia remains the world’s largest lithium producer, extracting 88,000 metric tons in 2024. Despite holding the top position, output actually declined 4 percent from 91,700 MT in 2023, reflecting weaker EV demand that compressed lithium prices globally.

The country’s mining operations showcase the scale of hard-rock extraction. Greenbushes, operated by Talison Lithium (jointly owned by Albemarle, Tianqi Lithium, and IGO), stands as the longest continuously operating mine in Western Australia, with four spodumene concentrate plants delivering 1.5 million MT capacity annually. Mount Marion, a joint venture between Mineral Resources and Ganfeng Lithium, adds another 600,000 MT of processing capability. Australia’s 7 million MT in identified reserves rank second globally, with most supply exported to China as spodumene concentrate.

Chile’s Brine Revolution and Political Currents

Chile generated 49,000 metric tons in 2024, cementing its position as the second-largest producer. Output has surged 127 percent since 2020’s 21,500 MT baseline, reflecting accelerating development of brine deposits in the Atacama region.

Unlike Australia’s hard-rock mining, Chilean lithium emerges from salt flat brines. The Salar de Atacama produces roughly half of SQM’s revenues while also hosting Albemarle’s operations. A landmark 2023 government initiative sought controlling stakes in lithium assets through state-owned Codelco, reshaping ownership dynamics. SQM’s arrangement allows continued operations through 2060 via a 50-plus-one ownership structure with Codelco.

Recent 2025 developments signal major industry shifts. Fossil fuel giant Exxon Mobil entered discussions with Chilean officials about lithium opportunities, while oilfield services firm SLB is testing extraction technologies alongside seven other companies.

China: The Processing Powerhouse

China produced 41,000 metric tons in 2024, achieving 15 percent year-on-year growth from 35,700 MT in 2023. As the world’s largest lithium consumer and manufacturer of two-thirds of all lithium-ion batteries, China controls most processing infrastructure globally.

The country receives the majority of lithium from Australia but actively expands domestic capacity. A January 2024 discovery unveiled a massive million-metric-ton deposit in Sichuan Province, while exploration over three years boosted reserves by 1 million MT to 3 million MT according to USGS. However, the China Geological Survey subsequently raised estimates to more than 30 million MT in early 2025, suggesting untapped domestic potential.

Zimbabwe’s Dramatic Emergence

Zimbabwe’s production ballooned to 22,000 metric tons in 2024—an astronomical leap from just 800 MT in 2022. Year-over-year growth of 47 percent, combined with reserve increases from 310,000 MT to 480,000 MT, positions Africa’s lithium sector as a transformative force.

A December 2022 ban on raw lithium exports catalyzed domestic processing development, exempting companies already building mines or plants. Lithium concentrate is now Zimbabwe’s third-largest mineral export behind gold and platinum-group metals. Chinese firms including Sinomine Resource Group have aggressively acquired stakes; the Bikita mine represents China’s early positioning in African supply chains. Zhejiang Huayou Cobalt’s Arcadia mine and state-owned Kuvimba Mining House’s Sandawana facility join this expanding ecosystem.

Argentina’s Tenfold Potential

Argentina’s output more than doubled to 18,000 metric tons in 2024 from 8,630 MT in 2023. As part of the Lithium Triangle alongside Bolivia and Chile, Argentina’s Salar del Hombre Muerto brines contain 4 million MT in reserves—sufficient for 75 years at projected rates.

Two operational brine facilities currently support production, with 10 projects in development stages. Eurasia Group analysts project tenfold growth by 2027. Rio Tinto’s pending Arcadium Lithium acquisition (closing early March 2025) consolidates the third-largest producer’s South American footprint. The Rincon lithium project, targeted for 2028 commercial production, will deploy direct lithium extraction technology to produce 60,000 MT annually, supported by a December 2024 announcement of US$2.5 billion in expansion funding.

Brazil’s Acceleration and Investment Plans

Brazil generated 10,000 metric tons in 2024, nearly doubling 2023’s 5,260 MT. After producing 400 MT or less from 2011-2018, the trajectory shifted dramatically starting 2019.

The government plans to invest more than US$2.1 billion by 2030 into production expansion. Minas Gerais launched the Lithium Valley Brazil initiative, promoting investment through partnerships with Sigma Lithium, Lithium Ionic, Atlas Lithium, and Latin Resources in the Jequitinhonha Valley. Major EV manufacturers now eye Brazilian resources; BYD reportedly acquired 852 hectares of lithium-rich land in 2023, though the company’s factory construction in Bahia state faced pauses due to labor concerns.

Canada’s Northern Supply Chain Push

Canadian production reached 4,300 metric tons in 2024, a 32 percent increase from 3,240 MT in 2023. Two operations—the Tanco mine in Manitoba (Sinomine subsidiary Tantalum Mining) and North American Lithium in Québec (Piedmont Lithium and Sayona Mining joint venture)—currently dominate output.

Vast untapped reserves of hard-rock spodumene and brine resources remain underdeveloped. Government investments support direct lithium extraction technologies in prairie provinces Alberta and Saskatchewan through E3 Lithium and Prairie Lithium. The C$1.5 billion Critical Minerals Infrastructure Fund addresses sustainable development gaps. Canada earned top rankings in BloombergNEF’s Global Lithium-ion Battery Supply Chain for 2024, while Export Development Canada pledged C$100 million to Green Technology Metals for Ontario’s Seymour Lake mine development.

Portugal and Europe’s Emerging Role

Portugal’s output remained flat at 380 metric tons in 2024, mirroring 2023 levels but declining sharply from 2021’s 900 MT peak. Small-scale operations targeting quartz and feldspar dominate, yet reserves total 60,000 MT.

Savannah Resources delayed its Barroso project—Western Europe’s first major lithium mine—to 2027 due to environmental and regulatory processes. Public opposition to mining’s ecological impact creates headwinds, though strategic importance for EU battery independence remains undeniable.

United States: Production Data Withheld

The US withheld production figures to protect proprietary company information. Operations center on Nevada’s Clayton Valley brine site (likely Albemarle’s Silver Peak mine) and Utah’s US Magnesium waste tailings recovery. Major projects under development include Lithium Americas’ Thacker Pass claystone project, Piedmont Lithium’s hard-rock initiative, and Standard Lithium’s Arkansas Smackover brine operation.

The Supply Chain Imperative Ahead

With lithium production projected to expand 7.2 percent annually through 2035, the coming decade represents a critical investment inflection point. Australia and Chile will remain foundational suppliers, China will dominate processing, while emerging producers like Zimbabwe and Argentina reshape global dynamics. Europe and North America are racing to build domestic capacity, recognizing that energy independence and EV leadership depend on lithium security. The world’s largest producer status matters less than creating resilient, geographically diversified supply networks capable of supporting the battery revolution at scale.