Lithium: Global Projects and Policies of Economic Powers

What Is Lithium?

Lithium, a light, silver-colored, highly reactive metal, is an alkali metal with the symbol "Li" in the periodic table. With an atomic number of 3, lithium is a highly reactive element that does not exist in its pure form in nature but rather in ionic compounds. It is primarily found in minerals and salt deposits. The extraction and production of lithium present significant environmental challenges. Mining and evaporation-based extraction methods can lead to land degradation, water pollution, and greenhouse gas emissions due to the energy-intensive processes involved.

Key Applications of Lithium

Here is a list of the main applications of lithium:

1. Rechargeable Batteries: Lithium is widely used in lithium-ion batteries.
2. Medicines: Lithium carbonate is used to treat bipolar disorders and other psychiatric conditions.
3. Metal Alloys: Lithium is used in the production of lightweight alloys for aerospace and other industrial applications.
4. Ceramics and Glass: Lithium enhances the strength and durability of ceramics and glass.
5. Lubricants: Lithium is used in various industrial lubricants, particularly lithium greases.
6. Hydrogen Production: Lithium is involved in chemical processes to produce hydrogen.
7. Solar Energy: It is used in some energy storage technologies, particularly those related to solar power.
8. Electronics: Lithium is found in electronic components, such as capacitors.

Global Lithium Utilization (2022) 

A pie chart shows the global usage of lithium in 2022. The majority (80%) was used in battery production, followed by ceramics and glass (7%), lubricating greases (4%), fluxes for continuous casting (2%), and other miscellaneous products (7%).

Batteries are the primary sector consuming lithium, accounting for 80% of global demand in 2022. These lithium batteries are mainly used in electric vehicles, a rapidly growing market. The global demand for lithium is expected to exceed two million tons by 2030. Among the top lithium consumers, China stands out due to its position as a major manufacturer of batteries and electronics.

Top 10 Lithium-Ion Battery Companies in The World (2023) 

According to the latest data from the South Korean market research firm SNE Research, CATL is the largest energy battery company globally, with an installed capacity of 34 GWH and a market share of 24.82%. The top ten lithium-ion battery companies in the world include:

1. CATL (Contemporary Amperex Technology Co., Limited)
2. LG Energy Solution, Ltd.
3. Panasonic Corporation
4. SAMSUNG SDI Co., Ltd.
5. BYD Company Ltd.
6. SVOLT Energy Technology
7. Tesla
8. MANLY Battery
9. Toshiba Corporation
10. EVE Energy Co., Ltd.

Top Lithium-Producing Countries (2010–2023)

This statistic represents the leading lithium-producing countries worldwide, in tons, from 2010 to 2023. In 2023, Australia was the top lithium producer, followed by Chile and China.

Countries with The Largest Lithium Reserves (2023)

This statistic shows the countries with the largest lithium reserves in 2023, measured in thousands of tons. Chile's lithium reserves in 2023 were estimated at 9.3 million tons, making it the largest in the world. The United States, in the same year, had approximately 1.1 million tons of lithium reserves.

Chile and Australia are the leading global producers of lithium. Lithium is extracted from spodumene in Australia, and lithium carbonate is extracted in Chile. Since 2017, Chilean lithium production has steadily increased, making the country responsible for nearly one-third of the world’s production in 2022.

Major Lithium Extraction and Investment Companies

The largest lithium mining and investment companies focus primarily on resource-rich regions such as South America, Australia, and parts of the United States. Some of the most notable companies include:

1. Albemarle Corporation: Based in the United States, Albemarle is one of the world’s largest lithium producers, with operations in Australia and South America. In 2020, Albemarle was the largest global supplier of lithium for electric vehicle batteries.
2. SQM (Sociedad Química y Minera de Chile): Founded in 1968, this Chilean company is a leading lithium producer, operating salars in Chile.
3. Livent Corporation: This company offers lithium-based products for applications in batteries, agrochemicals, aerospace alloys, lubricants, pharmaceuticals, polymers, and various industrial applications.
4. Ganfeng Lithium: Founded by Li Liangbin in 2000 in China, Ganfeng is one of the largest lithium producers, with extraction operations in Australia and Argentina.
5. Orocobre Limited: This company is engaged in lithium-related activities and the development of lithium deposits, primarily producing and developing industrial chemicals in Argentina.
6. Tianqi Lithium: Based in Sichuan, China, this company specializes in lithium extraction. In 2018, the company controlled more than 46% of global lithium production.
7. Mineral Resources Limited: MinRes is a leading diversified resources company with extensive operations in lithium, iron ore, energy, and mining services across Western Australia.

Lithium in Africa: The Leading Producer

Zimbabwe is one of Africa’s top lithium producers. The country has attracted over a billion dollars in new mine investments over the past three years, and the government encourages companies to build local plants for reprocessing their production. The Zimbabwean government announced that it had already received four proposals for local processing projects from mining companies active in the country. Chinese companies Zhejiang Huayou Cobalt, Sinomine Resource Group, Chengxin Lithium Group, and Tsingshan Group have all invested in Zimbabwe in recent years, drawn by the country’s hard rock lithium reserves.

Top 10 Lithium Mines in Africa 

“Energy Capital & Power”, Africa's leading energy sector investment platform, has compiled a list of the ten largest lithium mines in Africa.

Arcadia Project, Zimbabwe: Located 38 km east of Harare, the capital, this project hosts lithium reserves of 42.3 million tons, considered one of the world’s largest hard rock lithium resources. In 2022, the Chinese mining company Zhejiang Huayou Cobalt purchased 87% of the project. The group plans to invest around $300 million to build the mine and install a processing plant with a capacity of approximately 4.5 million tons of ore per year, aiming to produce up to 400,000 tons of lithium concentrate annually.

Bikita Mine, Zimbabwe: The country’s main lithium site, acquired by the Chinese mining group Sinomine Resource Group, is expected to produce up to 300,000 tons of spodumene concentrate (a pyroxene group silicate mineral) and 480,000 tons of petalite (another silicate mineral) annually.

Blesberg Lithium and Tantalum Mine, South Africa: Contains between 250,000 and 400,000 tons of lithium and is owned by Marula Mining. The first shipment of lithium ore was undertaken in January 2023.

Bougouni Project, Mali: With an estimated resource of 236,500 tons of lithium oxide, this project is to be developed as a conventional open-pit mine. A processing facility is being designed by the UK-based Kodal Minerals to process two million tons of lithium ore annually. Kodal Minerals signed a memorandum of understanding with the engineering and construction firm Sinohydro in September 2020 to co-develop the project.

Ewoyaa Project, Ghana: Set to become Ghana's first lithium-producing mine, with mineral resources estimated at 35.3 million tons. With production expected by late 2024, the project is being developed by the Australian company Atlantic Lithium and is projected to have a lifespan of 12.5 years. With an initial investment of $125 million, it will employ conventional open-pit mining methods.

Goulamina Project, Mali: Located about 150 km from Bamako, the capital, this project is expected to produce 142.3 million tons of lithium oxide at 1.38% over 21 years. Developed and operated through a joint venture between Australian mining company Leo Lithium and Chinese Jiangxi Ganfeng Lithium, the project's total capital cost will exceed $320 million, targeting spodumene concentrate production in the first half of 2024.

Karibib Project, Namibia: With a total production estimate of 773,000 tons of lithium over 14 years, the lithium concentrate produced from the mine will be shipped to a planned chemical plant with a production capacity of 56,700 tons per year of lithium concentrate in the United Arab Emirates. The Karibib project is owned and operated by Australian company Lepidico.

Manono Project, Democratic Republic of Congo: Operated by Australian exploration company AVZ Minerals, it is expected to produce about 700,000 tons of high-grade lithium per year over the 20-year life of the mine. The project will receive an investment of approximately $545.5 million, targeting a mineral resource base estimated at 401 million tons of lithium oxide.

Manono Tailings Project, Democratic Republic of Congo: Has an initial estimate of mineral resources at 5.46 million tons. The project will comprise 11 deposits and is expected to achieve a production of 100,000 tons per year of concentrate, to be placed on the international market by 2025.

Zulu Lithium/Tantalum Project, Zimbabwe: Considered the largest undeveloped lithium site in Zimbabwe, it comprises 14 mining concessions covering an area of about 2.5 km². Owned by Premier African Minerals, the project targets an inferred mineral resource of 526,000 tons of lithium carbonate equivalent. The mine began production in the first quarter of 2023, with a pilot plant developed by the Chinese research and development company Suzhou TA&A Ultra Clean Technology, with a capacity of 50,000 tons per year.

Lithium: Where Do the Global Economic Powers Stand?

The United States: According to the USGS (United States Geological Survey), securing lithium supply is a priority for tech companies in the United States and Asia. In 2018, the U.S. Department of the Interior added lithium to the list of critical minerals by expediting mining permits. The USGS reports that the U.S. has only one active lithium mine in Nevada and one lithium-ion vehicle battery recycling facility in Ohio. However, the U.S. holds 10% of the world’s known lithium reserves, around 73 million tons, particularly in the Western U.S., which boasts some of the richest and most accessible deposits. In California alone, nearly 2,000 lithium mining permit applications have been submitted for about 12,000 hectares of federal land.

President Joe Biden is striving to develop an American electric vehicle and battery industry, aiming not only to transition to electric power but also to reduce dependency on foreign sources, particularly China. Significant lithium deposits are found in Nevada, California, and North Carolina, where Gaston County's subsurface resources are highly sought after. Despite China's dominance, Chile and Argentina are also major players in the lithium industry.

Piedmont Lithium, a U.S.-based global company, aims to become one of North America's leading lithium hydroxide producers. Du to global mobilization and the electrification of transportation, this American company is poised to become a key contributor to the electric vehicle supply chains and battery manufacturing in the U.S. Piedmont Lithium plans to produce 30,000 tons of lithium hydroxide annually, significantly boosting U.S. capacity. Albemarle, the world’s largest lithium producer, plans to reactivate a disused mine in Kings Mountain, North Carolina.

The United States and Argentina recently signed a memorandum of understanding to strengthen the production of critical minerals, particularly lithium, which are essential for the energy transition. The agreement aims to promote investment not only in mining, extraction, processing, and refining but also in the recycling and recovery of critical minerals through cooperation and financial and technical assistance. The Lithium Triangle, a region in South America, could hold more than half of the world’s lithium reserves, vital for electric vehicle and smartphone batteries.

China: In 2022, China held 8% of the world’s lithium reserves and 72% of global refining capacity. Through massive investments, China currently controls mines in other countries, particularly in Africa. Chinese investments in African mines could increase lithium production by more than 30 times by 2027. However, some countries with the largest lithium reserves and critical mineral reserves are blocking Chinese investments, citing national security concerns. Through either domestic mining or acquiring stakes in mining companies globally, China controls 41% of the world’s cobalt mines and most lithium mines.

Approximately 67% of the world’s lithium supply is processed in China, along with 73% of cobalt, 70% of graphite, and 95% of manganese, all essential minerals for green technologies. By July 2023, China had established a leading position in Africa’s lithium supply chain. In March 2023, the first Chinese-owned lithium concentrate plant in Africa began experimental production in Zimbabwe. The Chinese battery minerals producer Huayou Cobalt, one of the world’s largest cobalt producers, acquired the Zimbabwean mine for $422 million. The company announced plans to spend $300 million to build a plant capable of processing 4.5 million tons of lithium ore, expected to produce 50,000 tons of lithium carbonate equivalent concentrate.

Chinese company Gotion High Tech, one of the world’s largest battery manufacturers, announced a memorandum of understanding with Morocco to invest $6.4 billion and establish a new 100-gigawatt-hour electric vehicle battery manufacturing plant in the African country.

China's green programs are causing concern among Europeans and Americans. Why? Chinese subsidies are present throughout the "green" production chain. Cheap loans, low-cost land access, and massive infrastructure investments are all part of the Chinese government’s strategy. This strategy affects production and consumption: this East Asian country controlled an average of 71% of global production in the electric vehicle, solar panel, and lithium battery industries in 2023 (electric vehicles 60%, solar panels 80%, and lithium batteries 74%) china accounted also for an average of 66% of global sales (electric vehicles 60%, solar panels 80%, and lithium batteries 60%).

Geopolitically, China appears to have two goals: ensuring a continuous and substantial supply of lithium while asserting its influence in resource-rich African countries. By heavily investing in these countries, Beijing is strengthening economic ties and potentially reducing its dependence on other lithium-rich regions where geopolitical tensions or other major competitors already exist. China and Russia, the two pillars of BRICS, are several steps ah

ead. In January 2023, La Paz announced the creation of a joint venture with Contemporary Amperex Technology, a Chinese battery giant. The consortium announced this summer plans to spend $1.4 billion to build lithium extraction plants in Bolivia.

Germany: The world’s largest battery manufacturers are from Asia, mainly China and South Korea. However, Germany, a European country, is also investing heavily in this technology. Battery production is rapidly advancing, and within a few years, one in four electric vehicles produced in Europe could run on a battery made in Germany.

The first large-scale lithium refinery was established in Bitterfeld-Wolfen, Germany. Lithium is a rare and essential component for manufacturing electric batteries, for which the green continent seeks to reduce its dependence on imports. According to Stefan Scherer, CEO of AMG Lithium, the first module of the AMG plant will be able to produce 20,000 tons of lithium hydroxide annually, enough to manufacture around half a million car batteries. Additional phases could later be added to reach 100,000 tons of capacity, which he claims could meet "up to 20%" of European demand.

Germany's Vulcan Zero Carbon Lithium project also aims to reduce CO2 emissions in the battery metals supply chain by using renewable energy for the extraction and production of lithium hydroxide. The start of production follows three years of work during which tests were conducted in Vulcan’s laboratory and pilot plant. The company reports that the initial results are positive, achieving a lithium extraction yield consistently above 90%. Vulcan Energy is raising funds for its first large-scale industrial plant, with an expected annual production of 24,000 tons of lithium hydroxide, equivalent to 500,000 electric vehicles, scheduled for the end of 2026.

The United Kingdom: In a press release, Imerys, a French multinational company specializing in the production and processing of industrial minerals, announced its intention to become the "first integrated lithium carbonate producer for batteries in the UK." With British Lithium, the French company plans to exploit the largest lithium deposit in Cornwall, in southwest England. Imerys plans to contribute its lithium mineral resources, land, and infrastructure for an 80% stake in the joint venture that will bind the two companies in this project. The mine’s lifespan in Cornwall is estimated at 30 years. Cornwall will become the main center for lithium extraction in the UK. The goal is 20,000 tons of lithium carbonate per year, sufficient to equip 500,000 electric vehicles annually until the end of the decade. According to Alessandro Dazza, CEO of the French company Imerys, open-pit production is expected to start by the end of 2028.

Lithium, The War in Ukraine, And Sanctions: Where Is Russia? 

In April 2024, Andrey Chibis, the governor of the Murmansk region, reported to Vladimir Putin the presence of significant lithium reserves in the region's subsoil. Geological exploration on the Kola Peninsula revealed that the lithium reserves were larger than initially expected. Russia could potentially become the third-largest lithium producer in the world.

Russia is home to some of the world’s largest natural resource reserves, including natural gas, oil, and minerals. Russia also has significant lithium reserves, but most have not been exploited over the past 20 years, as the country’s domestic needs have been met by cheaper imports. Due to sanctions, most lithium imports will be suspended, meaning the development of domestic production of this valuable metal could become a government priority.

Russia does not currently produce raw lithium materials. The country receives lithium in the form of lithium carbonate, mainly from Chile, Argentina, China, and Bolivia. Following the suspension of deliveries from Chile and Argentina, Bolivia remains Russia’s only source of lithium. According to the USGS, Russia’s estimated lithium reserves amount to 1 million tons. To avoid a lithium shortage in Russia, some local mining giants have already announced plans to start developing lithium deposits in the country.

In February 2022, Russian gas company Gazprom announced the signing of documents for a lithium production project at its Kovyktinskoye gas field for the production and processing of brines to obtain lithium compounds and other minerals.

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