In June, the Energy Institute published its 2024 Statistical Review of World Energy, offering a detailed snapshot of global supply and demand for major energy sources, broken down by country. This year’s findings highlight Australia’s dominant position in lithium production, showcasing a dramatic increase in its global share from 2004 onward, reaching 43.4% by 2023. Chile remains a key player as well, with its production hitting 56.5 thousand tons in 2023, supported by its extensive lithium reserves, the largest globally.
China’s lithium production has seen steady growth, increasing from 2.3 thousand tons in 2008 to 33.0 thousand tons in 2023. This aligns with China’s strategic investments aimed at securing raw materials for its expanding battery manufacturing sector. Meanwhile, emerging producers such as Argentina and Brazil have also boosted their output significantly, although they still contribute less compared to the leading producers.
The Review highlights that global lithium reserves are on the rise, driven by ongoing exploration and development to meet future demand. Countries like Brazil and Zimbabwe have demonstrated exceptional growth rates in recent years, despite their smaller production bases.
Top producers and market insights
The Review now lists only the top eight lithium producers, which collectively account for over 98% of global production. Australia remains the leading producer, holding 23.8% of the world’s proved lithium reserves. Chile leads in reserves, possessing 35.7% of the global total.
Among these top producers, the U.S. is the only country to have experienced a decline in lithium production over the past decade. Furthermore, the U.S. has the lowest lithium production relative to its reserve size compared to other major producers.
This data underscores the U.S.’s minor role in the global lithium market. Given lithium’s critical role in electric vehicle batteries and energy storage, the U.S. faces potential strategic and economic risks from reliance on foreign sources, particularly China. This situation could parallel past dependencies on OPEC for petroleum.
To mitigate these risks, the U.S. may need to bolster its domestic production capabilities or secure stable supply chains with key foreign producers. As demand for lithium continues to surge with the growth of the electric vehicle and energy storage industries, addressing these vulnerabilities will be crucial.
Conclusions
The Review reveals a robust and expanding global demand for lithium, with Australia and Chile leading the production market. China has also made significant strides. However, the U.S. remains a minor player, highlighting concerns about its reliance on foreign lithium sources. As lithium demand continues to grow, driven by advances in electric vehicles and energy storage, the U.S. must address potential strategic and economic risks associated with its current supply dependencies.
