Global Lithium Deposit Distribution: Which Nations Control the World's Battery Metal Supply?

The race for lithium dominance has become central to the global energy transition. As demand for lithium-ion batteries continues its explosive growth trajectory, understanding where the world’s lithium deposits are concentrated is essential for investors, policymakers and industry stakeholders alike.

According to the latest US Geological Survey data, total worldwide lithium reserves reach 30 million metric tons as of 2024. However, the distribution is far from even. A handful of nations control the vast majority of accessible lithium deposits, positioning themselves as critical players in the clean energy supply chain.

The Emerging Lithium Hierarchy: Production Doesn’t Match Reserves

An interesting paradox defines today’s lithium market: the countries holding the largest lithium deposits don’t always lead in production volume. Australia produced 44,000 metric tons in 2024—making it the world’s top producer—yet its lithium reserves rank second globally at 7 million metric tons. Meanwhile, Chile, home to 9.3 million metric tons of lithium deposits, ranked as the second-largest producer with similar output levels.

This gap reveals a critical insight: reserve size alone doesn’t determine market dominance. Extraction capacity, technological advancement, regulatory frameworks and geopolitical factors all play decisive roles.

Chile’s Lithium Supremacy and Nationalization Push

Chile undisputedly possesses the world’s most substantial lithium deposit base, containing 9.3 million metric tons. The Salar de Atacama region alone accounts for roughly one-third of global lithium reserves. Companies including SQM and Albemarle operate major extraction facilities across this salt flat, establishing Chile as the bedrock of global lithium supply.

However, Chile’s dominance faces structural challenges. President Gabriel Boric’s 2023 nationalization initiative signaled a strategic shift: the state-owned Codelco now negotiates for controlling stakes in major lithium operations. While this approach aims to maximize national economic benefit, the Baker Institute notes that Chile’s stringent legal framework around mining concessions has paradoxically limited its ability to expand market share proportional to its resource wealth.

Early 2025 developments show momentum: the government opened bidding for lithium operation contracts across six salt flats, with a consortium including Eramet, Quiborax and Codelco among key contenders. Winners will be announced in March 2025, signaling potential acceleration in extraction timelines.

Australia’s Hard-Rock Advantage and Geographic Potential

Australia’s lithium deposits differ fundamentally from those in Chile and Argentina. At 7 million metric tons, Australian reserves exist primarily as hard-rock spodumene formations concentrated in Western Australia. This geological distinction requires different extraction methodologies but hasn’t impeded Australia’s rise to the top production rank.

The Greenbushes mine, jointly operated by Talison Lithium (a partnership between Tianqi Lithium, IGO and Albemarle), has been producing lithium since 1985 and represents one of the world’s most productive operations. Yet recent price volatility has forced some Australian miners to curtail operations pending market stabilization.

Recent research published in Earth System Science Data reveals untapped potential beyond Western Australia’s traditional mining zones. University of Sydney researchers working with Geoscience Australia mapped elevated lithium concentrations across Queensland, New South Wales and Victoria, identifying future extraction sites as battery demand accelerates.

Argentina: Emerging Player in the Lithium Triangle

Argentina’s lithium deposits, totaling 4 million metric tons, position it as the third-largest reserve holder. Together with Chile and Bolivia, Argentina forms the “Lithium Triangle,” collectively controlling over 50% of global lithium resources. As the fourth-largest producer, Argentina yielded 18,000 metric tons in 2024—modest compared to Australia and Chile but growing.

The Argentine government committed US$4.2 billion to industry development in 2022. Recent regulatory approvals accelerated this trajectory: in April 2024, authorities greenlit Argosy Minerals’ Rincon salar expansion, targeting a production increase from 2,000 to 12,000 metric tons annually. More significantly, Rio Tinto announced a US$2.5 billion investment in December 2024 to expand Rincon operations from 3,000 to 60,000 metric tons, reaching full capacity by 2031 through a phased three-year ramp beginning in 2028.

With roughly 50 advanced mining projects in development, Argentina maintains cost-competitive production even during price downturns, positioning itself as a long-term supply anchor for global battery manufacturers.

China’s Paradox: Reserves, Production and Market Control

China holds 3 million metric tons of lithium deposits—smaller than the leading three nations yet increasingly strategically significant. The country’s lithium deposits comprise a diverse mix: brines represent the bulk, supplemented by spodumene and lepidolite hard-rock formations.

Production reached 41,000 metric tons in 2024, a 5,300-ton increase year-over-year. Despite this output, China remains a net lithium importer, drawing substantial supplies from Australia to feed its massive battery manufacturing infrastructure.

China’s true leverage stems from downstream control: the nation produces the majority of the world’s lithium-ion batteries and hosts most global lithium-processing facilities. This positions China as a critical nexus in the battery supply chain regardless of its absolute reserve position.

Geopolitical tensions emerged in 2024 when US State Department officials accused China of predatory pricing—deliberately flooding markets with discounted lithium to eliminate non-Chinese competitors. “They engage in predatory pricing…lower the price until competition disappears,” stated Under Secretary of State Jose W. Fernandez.

A surprising development occurred in early 2025: Chinese media reported a significant lithium deposit expansion, claiming national reserves now account for 16.5% of global resources—up from 6% previously. The increase reflects newly discovered lithium belts in western regions spanning 2,800 kilometers, with proven reserves exceeding 6.5 million metric tons and potential resources surpassing 30 million metric tons. Improved extraction techniques from salt lakes and mica deposits further strengthened China’s reserve base.

Beyond the Big Four: Secondary Lithium Reserve Holders

While the top four nations dominate, other countries maintain substantial deposits:

• 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, despite modest reserve volumes, produced 380 metric tons in 2024, demonstrating that emerging producers are expanding lithium extraction capacity across multiple continents.

Market Dynamics: Why Lithium Demand Continues Accelerating

The competitive intensity surrounding lithium deposits reflects concrete demand projections. Benchmark Mineral Intelligence forecasts that EV and energy storage system-related lithium demand will both surge over 30% year-on-year in 2025. Combined with cobalt and other battery metals, lithium remains indispensable for powering the global electrification transition.

As production follows demand increases, nations with substantial lithium deposits are positioning themselves as critical players in an industry reshaping global energy systems. The coming years will determine whether geopolitical cooperation or resource nationalism defines lithium’s future—with profound implications for the clean energy transition timeline.