Global Lithium Market Landscape: The Four Pillars of the World's Largest Lithium Mines and Reserves

The race for lithium dominance is reshaping the global energy landscape. As electric vehicle adoption accelerates and energy storage demand surges, understanding where the world’s lithium reserves are concentrated becomes crucial for tracking supply security and investment opportunities. With total worldwide lithium reserves standing at 30 million metric tons as of 2024, a small number of countries control the vast majority of this critical resource.

Why Lithium Matters Now More Than Ever

Before diving into the numbers, it’s important to understand the urgency. Benchmark Mineral Intelligence projects that demand for lithium-ion batteries will explode in 2025, with both EV and energy storage systems (ESS) requiring over 30% year-on-year growth. This is the battery metal that powers electric vehicles and underpins renewable energy storage. Cobalt may grab headlines, but lithium is the essential ingredient that everyone in the battery supply chain is scrambling to secure.

The largest lithium mines globally are concentrated in just a handful of nations, creating a supply bottleneck that will likely intensify over the next decade.

Chile: The Reserve Powerhouse (9.3 Million Metric Tons)

When it comes to lithium reserves, Chile sits at the top of the global hierarchy. The country holds 9.3 million metric tons of proven reserves, representing roughly one-third of the world’s economically extractable lithium. The Salar de Atacama region alone accounts for approximately 33% of global lithium reserve base, making it effectively a lithium fortress.

Yet despite this resource abundance, Chile ranked only as the world’s second-largest lithium producer in 2024, with output of 44,000 metric tons. The paradox reveals a critical challenge: having reserves doesn’t automatically translate to production dominance. SQM and Albemarle, the two major lithium producers operating in Atacama, face regulatory constraints that limit their expansion.

In a watershed moment for the industry, Chilean President Gabriel Boric announced partial nationalization of the lithium sector in April 2023, positioning the state-owned Codelco to take controlling interests in major operations. The government’s strict legal framework around mining concessions has historically prevented Chile from converting its vast reserves into proportional global market share. Early 2025 saw seven competitive bids for lithium operation contracts across six salt flats, signaling renewed government efforts to unlock production capacity. Winners are expected to be announced in March 2025.

Australia: The Production Leader (7 Million Metric Tons)

Australia’s story is different. With 7 million metric tons in reserves—primarily concentrated in Western Australia—the country claimed the title of world’s largest lithium producer in 2024. The distinction stems from deposit type: Australian lithium exists as hard-rock spodumene, not salt brine, enabling more rapid extraction once prices justify the operational costs.

The legendary Greenbushes lithium mine, jointly operated by Talison Lithium (a venture involving Tianqi Lithium, IGO, and Albemarle), has been producing lithium since 1985 and remains one of the world’s largest lithium mines by output. Yet the sector faces headwinds. Sharp lithium price declines have forced several Australian producers to curtail or suspend operations, waiting for market conditions to improve.

New frontiers are emerging. A 2023 University of Sydney study, in collaboration with Geoscience Australia, published in Earth System Science Data, mapped lithium density across Australian soils for the first time. The research revealed untapped potential beyond Western Australia’s dominance, identifying high-concentration zones in Queensland, New South Wales, and Victoria. As Professor Budiman Minasny noted, the mapping “agrees with existing mines and highlights areas that can be potential future lithium sources”—suggesting Australia’s reserve profile may expand further.

Argentina: The Growing Competitor (4 Million Metric Tons)

Argentina holds 4 million metric tons in lithium reserves, positioning it as the third-largest reserve holder globally. The country is a critical player in what’s known as the “Lithium Triangle”—Argentina, Chile, and Bolivia combined host more than half the world’s lithium reserves, creating a geopolitical concentration of supply.

As a producer, Argentina ranked fourth globally in 2024, outputting 18,000 metric tons. The government has signaled aggressive growth intentions. In May 2022, it committed to investing up to $4.2 billion in lithium development over three years. By April 2024, Argentina greenlit Argosy Minerals’ expansion at Rincon salar, with capacity to increase from 2,000 to 12,000 metric tons of lithium carbonate annually.

The scale ambitions are accelerating. In late 2024, mining giant Rio Tinto announced a $2.5 billion investment to transform its Rincon salar operations, expanding capacity from 3,000 to 60,000 metric tons over a three-year ramp-up beginning in 2028. Argentina hosts approximately 50 advanced lithium mining projects. According to Ignacio Celorrio, executive VP at Lithium Argentina, “Argentina’s lithium production remains cost-competitive even in a low-price environment”—a critical advantage as market dynamics shift.

China: The Processing Powerhouse (3 Million Metric Tons)

China’s 3 million metric tons of lithium reserves tell only half the story. What matters more is China’s role in the lithium supply chain ecosystem. While its proven reserves are fourth-largest, China produces 41,000 metric tons annually (up 5,300 MT year-over-year), yet still imports most of its lithium from Australia to feed its battery manufacturing capacity.

The country’s leverage comes from processing dominance, not raw material extraction. China produces the majority of the world’s lithium-ion batteries and hosts most of the planet’s lithium-processing facilities. This vertical integration makes it the true kingpin of global lithium supply, regardless of reserve rankings.

Recent developments signal China’s reserve position may shift dramatically. In early 2025, Chinese media reported significant bolstering of national lithium ore reserves, with claims that domestic deposits now represent 16.5% of global resources—up from just 6%. A newly discovered 2,800-kilometer lithium belt in western regions contains proven reserves exceeding 6.5 million tons of lithium ore, with potential resources surpassing 30 million tons. Advancements in extracting lithium from salt lakes and mica have further expanded the reserve estimate.

The geopolitical implications are profound. In October 2024, the US State Department accused China of engaging in predatory pricing to suppress competition. “They engage in predatory pricing… (they) lower the price until competition disappears,” stated Jose W. Fernandez, US Under Secretary of State for Economic Growth, Energy and the Environment.

The Broader Reserve Landscape

Beyond the top four reserve holders, significant lithium deposits exist globally:

• United States: 1.8 million metric tons
• Canada: 1.2 million metric tons
• Zimbabwe: 480,000 metric tons
• Brazil: 390,000 metric tons
• Portugal: 60,000 metric tons (Europe’s largest)

Portugal produced 380 metric tons in 2024, demonstrating that even modest reserve holders can maintain steady production. As the industry matures, these secondary markets will likely attract increased investment and development attention.

The Strategic Takeaway

The concentration of the world’s largest lithium mines and reserves in Chile, Australia, Argentina, and China creates both supply security concerns and investment opportunities. Reserve holders don’t automatically become dominant producers—regulatory frameworks, extraction technology, capital investment, and commodity prices all shape outcomes. The coming years will reveal which countries convert their geological fortune into genuine production leadership and market influence.