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General Market Commentary
8 Top Lithium-producing Countries
It’s no secret that the lithium sector continues to grow rapidly, and that’s largely because the metal is a key component of lithium-ion batteries.
Lithium-ion batteries are used in portable electronic devices, electric tools and more, but today they’re best known for being an energy source for electric vehicles. Electric vehicles are becoming increasingly common, spurred on by the work of Tesla Motors (NASDAQ:TSLA) and other car companies, and demand for lithium is increasing in tandem.
The latest data from the US Geological Survey (USGS) shows that the world’s top lithium-producing countries are doing their best to meet that growing demand. Worldwide lithium production rose 12 percent from 2015 to 2016, coming in at 35,000 metric tons (MT) last year.
Read on for a brief overview of the eight countries that produced the most lithium last year. If the electric vehicle market continues to grow in the future, it’s likely that they will produce even more of the metal in years to come.
You can also click here to see our list of the top lithium-producing companies of 2015.
1. Australia
Mine production: 14,300 MT
As in 2015, Australia was the world’s top lithium producer in 2016. It produced 14,300 MT of the metal last year, up 200 MT from the year before.
Australia hosts the Greenbushes lithium project, operated by Talison Lithium, a subsidiary jointly owned by China’s Tianqi Group and Albemarle (NYSE:ALB). Greenbushes is recognized as the longest continuously operating mining area in Western Australia, having been in operation for over 25 years.
Australia also holds over 2 million MT of identified lithium resources, according to the USGS. It is worth noting that most of the country’s lithium is exported to China as spodumene, although in 2016 there was a shortage of imports from Australia to China.
2. Chile
Mine production: 12,000 MT
Chile ranked second for lithium production again in 2016, increasing its production from 10,500 MT in 2015 to 12,000 MT last year.
As per the USGS, SQM (NYSE:SQM), a top lithium producer in Chile, ramped up production in 2016 by 20 percent. The Chilean government also gave Albemarle (NYSE:ALB), another lithium powerhouse in the country, permission to increase its lithium brine extraction.
Unlike Australia, where lithium is extracted from hard-rock mines, Chile’s lithium is found in brines below the surface of salt flats. The Atacama salt flat in Chile hosts roughly 37 percent of the world’s entire lithium production.
3. Argentina
Mine production: 5,700 MT
Lithium production in Argentina significantly increased in 2016, reaching 5,700 MT; that’s up from 3,600 MT in 2015. The USGS notes that the increase was largely due to a new brine operation.
It’s well known that Bolivia, Argentina and Chile make up the “lithium triangle.” Argentina’s Salar del Hombre Muerto district hosts significant lithium brines, while its reserves are sufficient for at least 75 years. At present, lithium mining in the country shows no signs of slowing down. According to Reuters, lithium carbonate production in Argentina will triple by 2019, and has the potential to grow even more if companies are successful in obtaining funding for their projects.