Most lithium comes from Australia, Chile and China, which also dominates in processing lithium and making batteries. Brine from underground aquifers is pumped to the surface and into evaporation ponds.
Australia is the global leader in lithium production, with five mines accounting for nearly half of the lithium production in 2021. Brine operations in Chile and Argentina and mines in China accounted for most of the remaining forecasted production in 2021.
The world's largest hard-rock lithium mine, the Greenbushes mine, is in Western Australia. It is co-operated by the Chinese company Tianqi Lithium and the Australian companies Talison Lithium and IGO Limited. In 2021, it contributed 40% of the lithium mined in Australia.
From there, the spodumene is shipped to China, where it is further refined so it can be used in the batteries that power goods like cellphones and electric cars. Australia mines about 53 percent of the world's supply of lithium, and virtually all of it is sold to China.
Who is the biggest lithium producer in Australia. Pilbara Minerals (PLS) is by far the biggest lithium mining company in Australia. Owning the world's largest hard-rock lithium operations, Pilbara produces over 377,000 metric tons of lithium every year.
PILBARA MINERALS
This has been one of our best shares to buy. We first recommended it when it's share price was 32c! Pilbara owns 100% of the world's largest, independent hard-rock lithium project. It will produce over 1 million tonnes of spodumene a year from 2025, in a sign the battery metal is not slowing down.
Tesla has previously inked deals with Australia's own BHP, Syrah Resources, Liontown Resources and Piedmont Lithium to supply critical battery resources.
Out of the 26 million tons of global lithium reserves as per the U.S. Geological Survey published in January 2023, Chile was home to the largest lithium reserves base with 9.3 million tons of proven lithium reserves. Australia was ranked #2 based on the lithium reserves with a reserve base of nearly 6.2 million tons.
Are lithium shares a good investment? While lithium share prices can be volatile due to supply-demand issues that impact the value of lithium as a commodity, the lithium sector does have good long-term growth prospects as the demand for lithium-ion batteries in electric vehicles (EVs) continues to increase.
The process of extracting lithium consumes significant amounts of water and energy, and lithium mining can pollute the air and water with chemicals and heavy metals. In addition, mining lithium can disrupt wildlife habitats and cause soil erosion, leading to long-term ecological damage.
For now, however, Australia has limited capability and capacity to refine spodumene into the lithium hydroxide needed for lithium-based batteries. The opportunity for Australia is twofold: rising lithium demand and the country's capacity to produce lithium hydroxide.
While the question of the supply of lithium for EV batteries is a valid one to raise, the abundant supply of lithium means it is unlikely that the world will ever run out of this vital resource.
Nearly 80 per cent of known deposits are in four countries – the South American lithium triangle of Argentina, Bolivia and Chile, and Australia.
While the world does have enough lithium to power the electric vehicle revolution, it's less a question of quantity, and more a question of accessibility. Earth has approximately 88 million tonnes of lithium, but only one-quarter is economically viable to mine as reserves.
Tesla officially broke ground Monday on a Texas lithium refinery, making it the only U.S. automaker to refine its own lithium. CEO Elon Musk said the refinery will produce enough battery-grade lithium for 1 million electric vehicles by 2025, which would make Tesla the largest processor of lithium in North America.
Picking individual lithium stocks can be fairly risky. But investing in a lithium stock-heavy exchange-traded fund, or ETF, can give your portfolio exposure to lithium with less risk. Lithium ETFs include a basket of stocks related to the lithium industry.
Shares in lithium producers have tumbled this year after sharp falls in spot prices driven by slowing demand for electric vehicles in China, leaving investors worried the 2022 boom has turned to bust.
Forbes Advisor has identified the best lithium stocks available on the market today. These eight stocks are great options for focusing your investments on this key commodity driving EV growth. Just keep in mind that lithium stocks can be volatile and carry a more serious degree of risk than other investments.
Kovyktinskoye is the largest gas field in Eastern Russia. Lithium is contained in the associated brines, and there has been talk about its extraction for several years. The process accelerated in 2022, and Kovyktinskoye was put into production in late December 2022.
Chile holds the world's largest lithium reserves and is the world's second-largest producer. Lithium is currently produced from hard rock or brine mines. Australia is the world's biggest supplier, with production from hard rock mines.
Before Russia invaded Ukraine in February 2022, Ukraine, home to approximately 500,000 tons of high-quality lithium and vast quantities of rare earth elements, was poised to be a key player in the global transition to green technology.
Japanese conglomerates Toyota Motor Corp and Panasonic Corp have announced that their joint battery venture will buy lithium from the Rhyolite Ridge mining project of ioneer Ltd. The resource will then be employed to manufacture electric vehicle batteries in the United States.
In 2022, Ford also announced a deal with the American subsidiary of Australian mining firm Ioneer Ltd. to buy 7,000 tons of lithium a year from the Rhyolite Ridge mining project in Nevada.
Source of EV Batteries
Half of the world's cobalt originates from the Democratic Republic of Congo, while Indonesia, Australia, and Brazil make up the lion's share of global nickel reserves, and South America's 'Lithium Triangle' consisting of Bolivia, Chile and Argentina hold 75% of the world's lithium.