Top Three Lithium Producing Countries (Thousand Tonnes, 2021)
-
Australia, Chile, and Argentina were the top three Lithium producing countries (by volume) in 2021
-
Australia was the leading Lithium producing country (by volume) in 2021, with a Lithium production of 46.0 thousand tonnes, up 15.0% YoY
-
Chile ranked second (by volume in 2021) with a Lithium production of 18.1 thousand tonnes (up 0.5% YoY), Argentina produced 11.0 thousand tonnes of Lithium in 2021
Top Three Lithium Producing Countries (Thousand Tonnes, 2021)
Increasing energy demands worldwide pose a greater threat towards the climate and the Paris Agreement’s goal of reaching climate neutral world by 2050. Combatting climate change forces, the world to switch to low-carbon sources of energy. To achieve the climate-neutral target, companies are reducing operating emissions, reducing coal output, increasing investment in low-carbon metals like copper, cobalt, nickel, and lithium.
The growing adoption of electric vehicles (EVs) is rapidly increasing the demand for lithium. Despite a slowdown in the market, global battery demand rose by 20.5% in 2020, supported by a shift in the design and advancement of battery technology. In the same year, batteries alone accounted for 71% of total lithium consumption.
Global lithium metal production is expected to reach 89.9 thousand tonnes (kt) in 2021, up by 9.6% over 2020, after registering an estimated 4.7% decline to 82.0kt that year, amid declining prices and the COVID-19 pandemic. According to GlobalData, eight operating mines accounted for the majority of the global output in 2020. Of these, four were operating in Australia and two each in Chile and Argentina.
After declining by 11.1% in 2020, lithium production in Australia recovered by 15%, to reach 46kt in 2021. This will be supported by miners returning to regular operating levels alongside a strong improvement in the lithium market conditions. Chile is the second-largest lithium producer in the world. The rapid spread of COVID-19 in Chile resulted in a 6.7% decline in the country’s lithium output in 2020, followed by marginal growth in 2021. Argentina was also impacted by a national lockdown, which led to the suspension of operations at Orocobre’s Olaroz lithium project and Livent Corp.’s Salar del Hombre Muerto mine.
GlobalData anticipates substantial growth in lithium production in the upcoming years. New mines and capacity expansions are forecast to boost the global lithium production to 183.4kt in 2025.
Related Data & Insights
Still looking?
Don’t wait - discover a universe of connected data & insights with your next search. Browse over 28M data points across 22 industries.
Explorer
Access more premium companies when you subscribe to Explorer
Get in touch about GlobalData Company reports
Contact the team or request a demo to find out how our data can drive your business forward