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Lithium

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The lightest metal and the key element in lithium-ion batteries, which now take nearly nine-tenths of supply. It is produced from brines in Chile, Argentina and China and from hard-rock minerals in Australia, China, Zimbabwe and Brazil.

Supply risk

Reviewed 11 Oct 2026 · Methodology

Elevated

China refines most lithium chemicals; Zimbabwe curbs and a China mine halt tighten supply

Supply concentration (high) sets the level: mining is spread across Australia, China and Chile, but China makes about 70% of the world's lithium chemicals. Export controls, operational disruption and demand (all elevated) add pressure in 2026, through Zimbabwe's export quotas, the halt at CATL's Jianxiawo mine and a forecast 2026 deficit, but supply to major markets is not impaired.

Since 1 Jan 2023 · Sources: Mercom India, U.S. Geological Survey, Reuters via Kitco

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Risk drivers

Supply concentrationHigh
Mining is diversified: in 2025 Australia had about 32% of world output, China 21% and Chile 19% (USGS). Refining is concentrated: the IEA's 2025 outlook found China produces about 70% of the world's lithium chemicals.Sources: U.S. Geological Survey, Mercom India
Export controlsElevated
Zimbabwe (~10% of mine supply) halted raw lithium exports on 25 Feb 2026, then set producer quotas and a 10% concentrate export tax ahead of a concentrate export ban from 1 Jan 2027. China's Oct 2025 battery-cell and cathode controls are suspended until 10 Nov 2026 (MOFCOM said on 28 Sep 2026 this runs to 10 Jan 2027); lithium-processing technology exports are restricted since Jul 2025.Sources: Al Jazeera, Reuters via Kitco, Ministry of Commerce of the People's Republic of China, Ministry of Commerce of the People's Republic of China, Ministry of Commerce of the People's Republic of China
Policy & tariffsModerate
Chile's National Lithium Strategy (2023) gives the state control of new production; the Codelco–SQM venture for the Atacama salt flat moved into implementation in Dec 2025. Zimbabwe requires lithium sulphate plants before 2027. US Proclamation 11001 (14 Jan 2026) set no Section 232 tariff on processed critical minerals but left further measures open.Sources: International Energy Agency, International Mining, Thompson Hine
Operational disruptionElevated
CATL's Jianxiawo lepidolite mine in Jiangxi, about 8–10% of China's lithium carbonate output, stopped in Aug 2025 when its permit expired. It restarted on 29 Jun 2026 but was halted again after regulators withdrew its environmental assessment notice; Benchmark has cut its 2026 output forecast by almost half.Sources: CnEVPost, The Northern Miner
Demand shockElevated
World lithium consumption rose 20% in 2025, led by batteries for electric vehicles and grid storage (USGS). Fastmarkets expects the market to move into deficit in 2026 as demand growth, led by energy storage, outpaces supply additions.Sources: Panorama Minero, U.S. Geological Survey

A supply-availability rating, not a price forecast or investment view. Export-control information is factual and is not legal advice.

Trade flows

2024 · HS 283691, 282520

CombinedLithium carbonate and lithium oxide/hydroxide

Recorded world imports: 471,486 t · $6.53B

Top exporters

  1. Chile53%250,709 t · $3.17B
  2. China26%123,059 t · $2B
  3. Argentina14%64,778 t · $840M
  4. United States2%7,714 t · $176M
  5. Australia2%7,387 t · $91.7M
  6. South Korea<1%4,028 t · $44.8M
  7. United Kingdom<1%2,051 t · $25.3M
  8. Germany<1%1,808 t · $34.4M
  9. Russia<1%821 t · $14.3M
  10. Netherlands<1%810 t · $8.92M

Top importers

  1. China52%243,177 t · $2.85B
  2. South Korea27%128,412 t · $2.09B
  3. Japan10%49,159 t · $867M
  4. United States3%16,170 t · $214M
  5. Netherlands2%9,653 t · $125M
  6. United Kingdom<1%3,264 t · $42.4M
  7. Germany<1%2,796 t · $40.5M
  8. Sweden<1%2,390 t · $53.2M
  9. India<1%2,197 t · $33.4M
  10. France<1%2,111 t · $31.5M

Largest routes

  1. Chile→China183,634 t · $2.09B
  2. China→South Korea84,453 t · $1.36B
  3. Argentina→China46,509 t · $584M
  4. China→Japan34,262 t · $561M
  5. Chile→South Korea33,871 t · $565M

Source: UN Comtrade, imports reported by 104 countries for 2024. Exporters are ranked by what importing countries recorded (mirror data), so countries that do not report their own exports are still counted. Values are in US dollars including freight and insurance. Weights are product weight. Recent years can be incomplete, and unrecorded trade is not included.

Overview

Lithium is a soft, silvery metal with the lowest of any metal, and it reacts vigorously with water. Its most important use is in rechargeable batteries for phones, laptops and . It is also used in glass and ceramics, greases, air-conditioning and drying systems, light and medicines.1

Batteries took an estimated 88% of lithium consumption worldwide in 2025.2 Lithium is on the 2025 US List of , and lithium is an EU .34

Where it comes from

Lithium is produced from two kinds of deposit. operations are located mainly in Argentina, Chile and China, while hard-rock mineral operations are in Australia, Brazil, Canada, China, Mali and Zimbabwe. In 2025, four brine operations in Argentina, seven mineral operations in Australia, two brine operations in Chile, nine mineral and six brine operations in China, and five mineral operations in Zimbabwe produced most of the world's lithium.2

World production, excluding the United States, rose 31% to about 290,000 t in 2025. Consumption rose 20% to an estimated 263,000 t. Namibia was removed from the production table because of legal uncertainties.2

Mine production by country2025 (est.) · world 290,000 t
  • Australia32%
  • China21%
  • Chile19%
  • Zimbabwe10%
  • Argentina8%
  • Brazil4%
  • Mali3%
  • Other countries2%

Lithium content. US production is withheld and excluded from the world total. Country figures sum to 288,380 t; USGS rounds the total to 290,000 t. Source: Mineral Commodity Summaries 2026: Lithium

The only commercial-scale US producer is a brine operation in Nevada, and its output is not published. Measured and indicated total about 150 million t worldwide. Argentina (28 million t), Bolivia (23 million t) and Chile (13 million t) hold the largest amounts outside the United States.2

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What it is used for

Battery demand has grown with electric vehicles, grid energy storage, portable electronics and power tools. Lithium minerals are also used directly as in ceramics and glass.2

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Grades and forms

Lithium is traded as mineral concentrate and as battery-grade chemicals. The chemical used depends on the . Lithium allows nickel-rich cathode materials to be made at lower temperatures, which improves performance and lifespan. (LFP) cathodes do not need it.5

Spodumene concentrate

Typically about 6% Li₂O

Hard-rock mineral concentrate, mainly from Australia, Zimbabwe, Brazil and Mali, converted into lithium chemicals.

Lithium carbonate

Battery chemical used for lithium iron phosphate (LFP) cathodes, glass and ceramics.

Lithium hydroxide

Preferred for high-nickel NCM and NCA cathodes because it allows synthesis at lower temperatures.

Lithium chloride

Intermediate and drying agent, also used in air-conditioning and industrial drying systems.

Lithium metal

Used in primary batteries and in aluminum-lithium and magnesium-lithium alloys.

Trade and policy

US exceeded 50% in 2025. Chile (54%) and Argentina (43%) supplied almost all US imports of lithium compounds in 2021–24.2

Recent export measures by producing and processing countries:

DateEvent
2022Zimbabwe bans exports of lithium-bearing ores and unbeneficiated lithium, except under ministerial permit.6
2023Chile announces a National Lithium Strategy, under which the state is to control lithium production through a national lithium company and take part in Atacama salt flat operations.7
15 Jul 2025China adds cathode material production technology and technologies for making lithium carbonate and hydroxide from spodumene and extracting lithium from brine to its catalogue of technologies restricted from export.8
9 Oct 2025China announces export controls on high-energy-density lithium-ion cells, some cathode materials and precursors, and related equipment, due from 8 November 2025.9
7 Nov 2025China suspends the October 2025 battery controls until 10 November 2026.10
29 Dec 2025Nova Andino Litio, the Codelco–SQM joint venture for the Atacama salt flat, moves into implementation.11
25 Feb 2026Zimbabwe suspends exports of all raw minerals and lithium concentrate with immediate effect, including cargo in transit.12
Apr 2026Zimbabwe introduces lithium concentrate export quotas and sets conditions for resuming shipments. The conditions include timelines for building lithium sulfate plants before a full ban on concentrate exports from 1 January 2027. A 10% export tax on concentrate stays in place until then.13

This section is factual background, not legal or trade-compliance advice.

Recycling and substitution

Lithium battery plants continued to be built in 2025, and car makers partnered with recyclers to secure battery materials.2

Lithium can be replaced in some uses. Calcium, magnesium, mercury and zinc can serve as in primary batteries, calcium and aluminum soaps can replace lithium stearates in greases, and sodium and potassium fluxes can replace it in ceramics and glass.2

Sources

  1. Lithium: element information, properties and uses. Royal Society of Chemistry, accessed 2026-10-03. ↩

  2. Mineral Commodity Summaries 2026: Lithium. U.S. Geological Survey, accessed 2026-10-03. ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7 ↩8

  3. Final 2025 List of Critical Minerals. Federal Register, accessed 2026-10-03. ↩

  4. EU critical raw materials. European Commission, Joint Research Centre (RMIS), accessed 2026-10-03. ↩

  5. Lithium hydroxide demand to overtake carbonate. Argus Media, accessed 2026-10-03. ↩

  6. Base Minerals Export Control (Unbeneficiated Lithium Bearing Ores) Order, 2022 (SI 213 of 2022). Government of Zimbabwe (via Veritas Zimbabwe), accessed 2026-10-03. ↩

  7. National Lithium Strategy (Chile). International Energy Agency, accessed 2026-10-03. ↩

  8. MOFCOM and MOST Announcement No. 28 of 2025 adjusting the Catalogue of Technologies Prohibited or Restricted from Export. Ministry of Commerce of the People's Republic of China, accessed 2026-10-03. ↩

  9. MOFCOM and GAC Announcement No. 58 of 2025 on export controls on lithium batteries and artificial graphite anode materials. Ministry of Commerce of the People's Republic of China, accessed 2026-10-03. ↩

  10. MOFCOM and GAC Announcement No. 70 of 2025 suspending Announcements Nos. 55–58 of 2025. Ministry of Commerce of the People's Republic of China, accessed 2026-10-03. ↩

  11. Nova Andino Litio move into Chilean lithium implementation phase. International Mining, accessed 2026-10-03. ↩

  12. Zimbabwe imposes ban on exports of all raw minerals and lithium concentrate. Al Jazeera, accessed 2026-10-03. ↩

  13. Zimbabwe to introduce lithium export quotas, sets conditions for resumption. Reuters via Kitco, accessed 2026-10-03. ↩

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