We will take a look at the top 5 countries in the world based on lithium reserves. To skip our analysis of the recent market trends, you can go directly to see the Top 15 Countries by Lithium Reserves.
5. Australia
Lithium Resources as of 2022: 7,900,000 metric tons
Lithium Reserves as of 2022: 6,200,000 metric tons
Australia is the largest producer of lithium across the globe with total production of 61,000 metric tons of lithium in 2022, accounting for nearly 47% of the global production. The country has been rapidly increasing its lithium output through expansionary projects at existing mines as well as the development of new mines.
The production of lithium by Australia increased by 10% y-o-y in 2022 and is expected to grow at an annual average rate of 20% in the next couple of years. Some of the leading lithium companies operating in Australia include China’s Tianqi Lithium Corp (SHE:002466), American chemicals company Albemarle Corp. (NYSE:ALB), Pilbara Minerals Ltd (ASX:PLS), Mineral Resources Ltd (ASX:MIN), and Jiangxi Ganfeng Lithium Co. Ltd., among others.
4. Chile
Lithium Resources as of 2022: 11,000,000 metric tons
Lithium Reserves as of 2022: 9,300,000 metric tons
Chile is a long, narrow country stretching along South America’s western edge, with more than 6,000km of Pacific Ocean coastline. Chile, Argentina, and Bolivia are together referred to as the “the Lithium Triangle”, as these countries combined hold more than 53% of the global lithium resources.
Chile, with lithium resources estimated at 11 million metric tons, is the second largest producer of the white metal globally. The country produced 39,000 metric tons of lithium in 2022 from its two brine operations. The brine operations are owned by American chemicals company Albemarle Corp. (NYSE:ALB), and Chilean chemicals company, Sociedad Quimica y Minera de Chile (NYSE:SQM).
3. United States of America
Lithium Resources as of 2022: 12,000,000 metric tons
Lithium Reserves as of 2022: 1,000,000 metric tons
United States of America has the third largest lithium resources in the world, accounting for more than 12% of the resources of the white metal globally. Despite that, most of the lithium utilized in the country is imported from other countries as there is only one operational lithium production site in the country.
American chemicals company Albemarle Corp. (NYSE:ALB) operates the sole lithium mine in the US which is currently operational. The site is located in Clayton Valley near Silver Peak, Nevada, and operates on brine resource of lithium.
Several other companies are working on projects to ramp up the production of lithium in the United States. One of these projects in the advance stage is the Thacker Pass mine being constructed by the Lithium Americas Corp. (NYSE:LAC).
2. Argentina
Lithium Resources as of 2022: 20,000,000 metric tons
Lithium Reserves as of 2022: 2,700,000 metric tons
Part of the “lithium triangle”, Argentina is home to the second largest occurrence of lithium mineral resources worldwide with 20 million tons of the white metal across its salt flats. Argentina is the fourth largest producer of Lithium globally with 6,200 metric tons of the metal produced last year.
Currently two lithium production facilities are operational in Argentina: the Fenix project in Catamarca operated by American company Livent Corporation (NYSE:LTHM), and the Salar de Olaroz mine in Jujuy operated by Australia’s Allkem Ltd (ASX:AKE). The country also has six lithium projects under construction and 15 in the advanced exploration or feasibility stage.
1. Bolivia
Lithium Resources as of 2022: 21,000,000 metric tons
Bolivia is a country in South America bordered by Brazil, Paraguay, Argentina, Chile, and Peru. The country hosts the largest lithium resources in the world at 21 million metric tons, according to the US Geological Survey. Despite having more than 20% of the global lithium resources, Bolivia didn’t contribute to the global production of the metal in 2022.
In January 2023, the Bolivian government announced that it had chosen a consortium including Chinese battery giant Contemporary Amperex Technology Co Ltd (CATL) and mining giant CMOC Group Ltd. to build a lithium extraction plant on the salt flats in Bolivia. As part of the partnership, the consortium would invest more than $1 billion in the first stage of the project.
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