Global Lithium Production Overview: Australia Leads with Record Output
According to the latest lithium statistics published by the United States Geological Survey (USGS) in January 2024, Australia remains the dominant force in global lithium production. In 2023, Australia produced an estimated 86,000 metric tons of lithium, surpassing the combined output of the next two largest producers, Chile and China.
Top Five Lithium Producing Countries in 2023:
- Australia: 86,000 metric tons
- Chile: 44,000 metric tons
- China: 33,000 metric tons
- Argentina: 9,600 metric tons
- Brazil: 4,900 metric tons
Together, Australia, Chile, and China account for 88% of the global lithium production. Notably, China's lithium production has seen a significant rise, from 4,000 metric tons in 2013 to 33,000 metric tons in 2023. Chinese companies have also expanded their influence in global lithium markets, with entities like Tianqi Lithium holding substantial stakes in major projects such as Greenbushes in Australia, the world's largest hard rock lithium mine.
Argentina produced 9,600 metric tons of lithium last year, more than doubling its output over the past decade, thanks to substantial foreign investments aimed at boosting production. Brazil, ranking fifth, produced 4,900 metric tons in 2023.
Despite the increased production to meet the growing demand from the clean energy sector, particularly for electric vehicle (EV) batteries, the lithium market has experienced an oversupply. This has resulted in lithium prices plummeting by more than 80% from their peak at the end of 2022.
The rapid expansion of lithium production reflects the critical role of this metal in the transition to renewable energy and electric transportation. However, the oversupply highlights the volatile nature of the market and the challenges faced by producers in balancing supply and demand. As global production scales up, the industry must navigate price fluctuations and continue investing in sustainable production practices to meet future demand efficiently.
