Madhumitha Jaganmohan
Research expert covering climate and environmental sustainability
Global lithium industry - statistics & facts
Lithium is a silver-white colored soft metal that belongs to the alkali metal group. It is the lightest metal and the least dense solid (at room temperature) element. Highly flammable and reactive, it is usually stored in mineral oil to preserve it from corrosion and tarnish. Due to its high reactivity, lithium does not occur in its elemental form; rather, it occurs naturally as part of chemical compounds. Commercial lithium production consists of isolating lithium through electrolysis from a mixture of potassium chloride and lithium chloride.
Lithium reserves and production: on the rise in step with demand
The total global reserves of lithium have increased in recent years, along with an increase in lithium exploration activity. Although Chile has the world's largest lithium reserves, at 9.3 million metric tons in 2023, Australia is actually the largest producer of lithium. Chile is the second-largest lithium producer, and China ranks third.Lithium-ion batteries and beyond: why lithium is such a hot topic
Lithium has several uses, including perhaps its most famous use, in lithium-ion batteries. In fact, lithium-ion batteries accounted for 87 percent of the global lithium consumption in 2023, and its use for this application continues to grow as the race to power electric vehicles accelerates. Other uses for lithium include lubricating greases, glass and ceramics, metallurgy, nuclear fusion applications, among others. Additionally, lithium has medical applications in the form of lithium carbonate, which is used in medication for bipolar disorder as a mood stabilizer.Lithium producers: the fab five
There are a handful of dominant lithium producing companies in the world. Combined, they accounted for more than 50 percent of lithium produced worldwide in 2023. The Chilean company Sociedad Quimica y Minera de Chile S.A. (SQM) and the United States-based Albemarle (which acquired Rockwood Lithium in 2015) are the two leading lithium producers in the world: SQM's lithium production accounted for 18 percent of the global lithium produced in 2023, while Albemarle accounted for a 17 percent share of the lithium produced worldwide that year. However, as the hype and demand for lithium is increasing drastically, more producers are entering the market.
