Global Lithium Supply: Which Nations Lead the World's Battery Metal Production?

The race to secure lithium supplies has intensified as demand for rechargeable batteries in electric vehicles, portable electronics, and grid storage accelerates worldwide. According to recent data from the US Geological Survey, global lithium output reached 240,000 metric tons in 2024, up from 204,000 MT the previous year—a testament to surging interest in this critical battery component.

The Lithium Market Landscape

Approximately 80 percent of mined lithium flows into battery production, though ceramics, glass, and lubricating greases consume the remainder. Manufacturers typically opt for lithium carbonate or lithium hydroxide rather than raw lithium metal, and these compounds work alongside cobalt, graphite, and nickel in battery formulations.

The sector experienced significant turbulence in 2024, with lithium carbonate prices declining 22 percent amid oversupply concerns. Yet analysts project cautious optimism for 2025: production cutbacks could shrink the surplus from 84,000 to 33,000 metric tons, while robust EV demand—particularly from China’s record vehicle sales—continues to anchor market fundamentals. The Benchmark Mineral Intelligence organization anticipates demand from EVs and energy storage to climb more than 30 percent year-on-year in 2025 alone.

Meeting this escalating demand will require approximately 150 new battery factories and US$116 billion in cumulative investment through 2030. With lithium mining projected to expand at a 7.2 percent annual rate through 2035, the coming decade will prove critical for supply chain development. China is expected to maintain its dominance, though the European Union and United States are positioned for faster growth trajectories.

The World’s Largest Lithium Producer and Its Peers

Australia Leads Global Output

Australia remains the largest lithium producer on the planet, extracting 88,000 metric tons in 2024. Despite maintaining the top position, the country experienced a slight contraction—output decreased just over 4 percent from 91,700 MT in 2023. Industry observers attribute the decline to tepid EV demand, which pressured prices lower.

The Greenbushes hard rock lithium mine, operated by Talison Lithium (jointly owned by Albemarle, Tianqi Lithium, and IGO), stands as the longest continuously operating extraction site in Western Australia. Its four spodumene concentrate plants collectively produce 1.5 million MT annually. Mount Marion, a collaboration between Mineral Resources and Ganfeng Lithium, adds another 600,000 MT in annual capacity.

Australia holds 7 million MT of JORC-compliant reserves—second only to Chile’s 9.3 million MT. Notably, most Australian lithium is exported to China in spodumene form rather than as finished product.

Chile and China: Secondary Powerhouses

Chile produced 49,000 metric tons in 2024, establishing itself as the world’s second-largest producer. Unlike Australia’s hard-rock extraction, Chilean operations tap lithium brine deposits, particularly in the Salar de Atacama salt flat. Lithium production has surged 127 percent since 2020, when output stood at just 21,500 MT. SQM and Albemarle dominate production there, and recent government initiatives have granted state-owned Codelco controlling stakes in certain assets through 2060.

China, despite manufacturing more than two-thirds of the world’s lithium-ion batteries, ranked third with 41,000 metric tons produced domestically in 2024—a 15 percent year-on-year increase. The country imports most of its raw lithium from Australia but announced discovery of a massive million-metric-ton deposit in Sichuan Province during January 2024. Current reserve estimates place China’s holdings between 3 million MT (USGS) and over 30 million MT (China Geological Survey), underscoring the uncertainty surrounding domestic resource assessments.

Rising Stars: Zimbabwe and Argentina

Zimbabwe has emerged as a significant player, achieving a remarkable 22,000 metric tons in 2024—up 47 percent from 2023’s 14,900 MT and an exponential jump from just 800 MT in 2022. The nation’s reserves climbed to 480,000 MT in 2023, supporting its ambitions to become a major battery-grade lithium processor. A 2022 ban on raw lithium exports incentivized domestic value-added processing. Chinese interests, particularly Sinomine Resource Group and Zhejiang Huayou Cobalt, have invested heavily in Zimbabwean mining operations.

Argentina produced 18,000 metric tons in 2024, more than doubling its 2023 output of 8,630 MT. The country, part of the Lithium Triangle alongside Bolivia and Chile, holds 4 million MT in reserves concentrated around the Salar del Hombre Muerto district. Rio Tinto’s pending acquisition of Arcadium Lithium and its Rincon project expansion—announcing a US$2.5 billion investment in December 2024—position Argentina for substantial capacity growth. Rincon is slated to produce 60,000 MT of battery-grade lithium carbonate annually upon commercial launch in 2028, utilizing direct lithium extraction technology.

Emerging Contributors: Brazil and Canada

Brazil’s lithium output doubled to 10,000 metric tons in 2024 from 5,260 MT the year prior. The government plans to invest over US$2.1 billion by 2030 to expand production capacity. Minas Gerais state’s “Lithium Valley Brazil” initiative supports multiple publicly listed producers including Sigma Lithium, Lithium Ionic, Atlas Lithium, and Latin Resources. Chinese EV manufacturer BYD has acquired lithium-rich land in the Jequitinhonha Valley, though its Bahia factory construction faced temporary suspension.

Canada produced 4,300 metric tons in 2024, reflecting a 32 percent increase from 2023’s 3,240 MT. Two primary operations—the Tanco mine in Manitoba and North American Lithium’s venture in Québec—supply current output. The government has deployed significant capital toward direct lithium extraction development in Alberta and Saskatchewan. In early 2024, BloombergNEF ranked Canada first globally in lithium-ion battery supply chain readiness, and Export Development Canada pledged C$100 million in financing toward Ontario’s Seymour Lake project by year-end.

Smaller but Strategic Players

Portugal produced 380 metric tons in 2024, maintaining flat output relative to 2023 despite possessing 60,000 MT in reserves. The Barroso project by Savannah Resources, intended to become Western Europe’s first major lithium mine, experienced delays to 2027 due to environmental review processes. Public opposition centered on mining’s ecological footprint persists.

The United States withholds production figures to protect proprietary company information. Limited output derives from two operations: an Albemarle brine site in Nevada (likely Clayton Valley’s Silver Peak) and tailings from US Magnesium in Utah. Projects under development include Lithium Americas’ Thacker Pass claystone operation, Piedmont Lithium’s hard-rock initiative, and Standard Lithium’s Arkansas Smackover brine venture.

Strategic Implications

As EV adoption accelerates and battery demand intensifies, the world’s largest lithium producer and its counterparts face mounting pressure to expand capacity responsibly. Supply chain diversification away from China remains a priority for Western nations, driving investment across South America, Africa, and North America. The next decade will determine whether production can adequately satisfy the anticipated surge in demand.