Global Production Centres

By November 13, 2018Lithium

1. Australia

Mine production: 18,700 MT

Kicking off our largest lithium producers list is Australia. It produced 18,700 MT of the metal last year, up an impressive 3,300 MT from the year before. The 34-percent increase has been attributed to two new spodumene operations that ramped up production, along with strong sales.

Australia hosts the Greenbushes lithium asset, which is operated by Talison Lithium, a subsidiary jointly owned by Tianqi Lithium (SZSE:002466) and Albemarle (NYSE:ALB). Greenbushes is the longest continuously operating mining area in Western Australia, having been in operation for over 25 years.

Australia also holds over 2.7 million MT of identified lithium reserves, according to the US Geological Survey — that’s just behind China and, of course, Chile. It is worth noting that most of the country’s lithium is exported to China as spodumene.

2. Chile

Mine production: 14,100 MT

Chile was another of the world’s top lithium producers in 2017, although its production decreased from 14,300 MT in 2016 to 14,100 MT last year. The US Geological Survey says the decline was likely the result of weather conditions that impacted the country’s brine production. Unlike Australia, where lithium is extracted from hard-rock mines, Chile’s lithium is found in lithium brine deposits.

The Atacama salt flat in Chile generates roughly half the revenue for SQM (NYSE:SQM), a top lithium producer. SQM finally reached a deal over disputed royalties with Chilean development agency Corfo in January 2018, which will impact its production. In 2018, the Chilean government also gave Albemarle, mentioned above, permission to expand its domestic lithium operations to 145,000 MT until 2043.

3. Argentina

Mine production: 5,500 MT

Lithium producer Argentina decreased its output by 300 MT in 2017, achieving production of 5,500 MT. As with Chile, the US Geological Survey notes that the fall was likely due to weather conditions — Argentina experienced heavy snowfall, which limited production at the country’s new brine operation.

It’s well known that Bolivia, Argentina and Chile make up the “lithium triangle.” Argentina’s Salar del Hombre Muerto district hosts significant lithium brines, while its reserves are sufficient for at least 75 years. At present, lithium mining in the country shows no signs of slowing down. According to Reuters,lithium carbonate production in Argentina will triple by 2019, and has the potential to grow even more if companies are successful in obtaining funding for their projects.

4. China

Mine production: 3,000 MT

China came fourth for lithium production in 2017, the same position it held the year before. The lithium producer saw its output grow to 3,000 MT last year from just 2,300 MT in 2016.

While lithium production in China is comparatively low, it is the largest consumer of lithium due to its electronics manufacturing and EV industries. China accounts for 55 percent of global lithium-ion battery production, according to Fortune. That number is expected to grow in the years to come.

China now gets most of its lithium from Australia, but is looking to expand its capacity in the future. In late 2017, “China’s appetite for lithium [was] on display in [a] Canadian takeover,” says the Financial Postin an article describing a $265-million investment into a Canadian lithium exploration firm.

5. Zimbabwe

Mine production: 1,000 MT

For the fourth year in a row, lithium producer Zimbabwe maintained production of 1,000 MT. The country’s privately owned Bikita Minerals allegedly holds the world’s largest-known deposit of lithium at over 11 million tonnes, but the company has been the subject of a court battle. According to the US Geological Survey, the country’s total reserves stand at 23,000 MT.

Since former President Robert Mugabe’s resignation after 37 years, there has been great speculation as to the country’s potential in the lithium space. Winston Chitando, Zimbabwe’s new mining minister, said he believes the country has “the potential to actually account for 20 percent of global demand when all known lithium resources are being exploited.”

6. Portugal

Mine production: 400 MT

Portugal produces much less lithium than the five countries ahead of it on this list. Last year, it put out 400 MT of the metal, double its output from 2016.

Most of the country’s lithium comes from the Goncalo aplite-pegmatite field. Despite this lithium producer’s comparatively low output, its reserves are greater than Zimbabwe’s, at 60,000 MT. Miners may be onto this because 46 applications were reportedly submitted to the Portuguese government last year to explore and extract lithium in the nation.

7. Brazil

Mine production: 200 MT

The next largest lithium producer is Brazil, whose lithium production has come in at 200 MT three years running. While lithium reserves in Brazil are small, the country does have deposits in the Minas Gerais and Ceara areas. Again, its reserves are more impressive than its output, standing at 48,000 MT, so the country potentially has a long lifespan for lithium output at the current pace.

8. United States

Mine production: unknown

The final listing on our top lithium producers list is the US, which withheld production numbers to avoid disclosing proprietary company data. Its only output last year came from a Nevada-based brine operation, most likely in the Clayton Valley, which hosts Albemarle’s Silver Peak mine.

In recent news, Lithium Americas (TSX:LAC) has announced plans to develop its Thacker Pass lithium project in Nevada. With proven resources of 3.1 million tonnes, the company is claiming it is the largest deposit of lithium in the US. This project is a little different that most in that it’s the first lithium-from-clay operation, and requires new extraction technology.

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