The Impacts of Lithium Prices Surging

Which countries produce the most lithium? 

The latest data from the US Geological Survey shows the world’s top lithium-producing and reserve countries. In 2020 alone, global lithium mine production was 82,000 metric tons. The top seven lithium-producing countries of 2020 are displayed below: 

Current demand for lithium has prompted Chinese mining companies to purchase South American lithium-rich mining operations. One notable deal is that of Zijin Mining Group, a major gold and copper producer in China, announcing its entry into the lithium sector with the $770 million USD purchase of Canada’s Neo Lithium Corp, which houses its mining operations in the South American “Lithium Triangle”, an area of land that accounts for over 40% of the world’s lithium reserves. 

In terms of manufacturing output, China accounts for 40% of the global market share in terms of market capitalization. According to a report by Bloomberg, China accounted for 73% of total global lithium cell manufacturing capacity, with the United States being in second place with 12%. 

The table below shows the current top lithium-producing firms by market cap. Data current as of August 9, 2021: 

Skyrocketing Lithium Demand and Pricing 

Sales of EVs are projected to rise globally by 90% this year, as compared to 2020, to more than six million vehicles sold. The top three markets for EVs – the US, EU, and China – will each see a 150-200% growth in overall sales. 

As the demand for EVs and consumer electronics rises, shortages of raw lithium materials have been driving their prices upwards. From January to September of this year, lithium carbonate prices rose by 352%, and lithium hydroxide prices rose by 320%.