The US has fallen behind in the global lithium race

In June, the Energy Institute launched 2024 Statistical Review of World Energy. The analysis provides a comprehensive picture of supply and demand for major energy sources at the country level. Each year I write a series of articles covering the Review’s findings.

In previous articles, we discussed:

Today’s article will be the last in the series as I will discuss global trends in lithium production.

Overview

Global lithium production has seen remarkable growth, rising from 9.5 thousand metric tons in 1995 to 198 thousand metric tons in 2023. This growth reflects an increase in demand driven by lithium’s essential role in batteries for electric vehicles and energy storage.

Global lithium production between 1995 and 2023. Robert Rapier

Australia has become the dominant producer worldwide, increasing its share significantly since 2004 and accounting for 43.4% of global production by 2023. Chile also remains a key player, with production reaching 56.5 thousand tonnes in 2023, backed by the world’s largest lithium reserves. .

China’s production has grown steadily, rising from 2.3 thousand tons in 2008 to 33.0 thousand tons in 2023, aligning with its strategic investments in securing raw materials for its expanding battery manufacturing industry.

Emerging producers such as Argentina and Brazil have seen substantial production increases, although they remain smaller contributors compared to the leading countries.

Reported global lithium reserves have expanded, highlighting continued exploration and development efforts to meet future demand. Countries such as Brazil and Zimbabwe have experienced exceptionally high growth rates in recent years despite starting from a smaller production base.

Top manufacturers

Unlike previous lists, the Magazine lists only the top 8 lithium producers in the world, which represent over 98% of the global total.

The best lithium producers in the world. Robert Rapier

In addition to being the world’s leading lithium producers, Australia also holds 23.8% of the world’s proven lithium reserves. The first place in this category is Chile, with 35.7% of the world total.

Of the Top 8, only the US has seen a decline in lithium production over the past 10 years. The US also has the lowest lithium production relative to the size of its reserves of any company in the table.

The data shows that the US is a minor player in the global lithium market. Given the expected importance of lithium in the coming decades, the US risks a situation analogous to its historical dependence on OPEC for oil.

This potential dependence on foreign sources – especially China – for such a critical resource, especially given the importance of lithium in electric vehicle batteries and energy storage, could pose strategic and economic risks. The US may need to consider additional steps to develop domestic production capabilities or to ensure stable supply chains with key foreign producers to mitigate potential vulnerabilities in lithium supply.

ConCluSIonS

Overall, the data points to strong and growing global demand for lithium, with Australia and Chile leading the market, while China has also made significant progress.

The US, however, remains a minor player, raising concerns about its reliance on foreign sources for this critical resource. As demand for lithium continues to grow, driven by the expansion of the electric vehicle and energy storage industries, the US faces potential strategic and economic risks.

Of Robert Rapier

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