Lithium (Li): Uses, Supply Chain and Market

Lithium is produced from brines and from hard-rock minerals, and an estimated 88% of it goes into batteries. In 2025 Australia produced an estimated 92,000 t, 32% of world mine production (USGS world total: 290,000 t), according to the US Geological Survey (USGS). US net import reliance for lithium in 2025 was more than 50%. Lithium is on all four official critical minerals lists: the US, EU, Australian and Canadian.

Which countries produce lithium?

What is lithium used for?

• Batteries: 88% of global end use; electric vehicles, grid storage, portable electronics and electric tools
• Ceramics and glass: 4%; lithium minerals are used directly as concentrates
• Lubricating greases: 2%
• Air treatment, continuous casting mold flux powders and medical: 1% each
• Other uses: 3%

How much does lithium cost?

USGS reports that spot lithium carbonate in China (cost, insurance, freight) rose from about $9,300 per ton in January 2025 to about $10,300 in November, spot lithium hydroxide in China from about $10,300 to $11,200, and spodumene (6% lithium oxide) in Australia from about $800 to $970. It notes that concern about a short-term oversupply kept prices low in the first half of 2025.

Is lithium a critical mineral?

Lithium is on all four official critical minerals lists: the US, EU, Australian and Canadian. Each government builds its list with its own method, so a mineral can be critical in one place and not in another.

Export controls and trade measures

• Zimbabwe has banned lithium ore exports since 2022 and Namibia has banned exports of lithium ores and concentrates since 2023 (USGS Table 4).
• China has required export licenses for items related to lithium batteries since 2025.

See the export controls tracker for dates and current status.

What are the substitutes for lithium?

Can lithium be recycled?

Construction of lithium battery recycling plants continued through 2025, and automobile companies partnered with battery recyclers to supply the automobile industry with a source of battery materials. USGS gives no recycling rate.

What are the supply risks and recent events for lithium?

• 2025. Excluding US production, world lithium production rose 31% to about 290,000 tons from 222,000 tons in 2024, while consumption rose 20% to an estimated 263,000 tons. Namibia was temporarily removed from mine production because of legal uncertainties.
• Second half of 2025. Strong electric vehicle sales growth in China and Europe and rising demand for battery energy storage systems lifted prices, even though some producers reduced output or postponed expansions in 2025 because of low prices.
• 2025. Significant capacity expansions took place in Argentina, Brazil, Canada, Chile, China, Mali, the United States and Zimbabwe.

US import sources, 2021 to 2024. Chile, 54%; Argentina, 43%; and other, 3%. (USGS)

Resources. Measured and indicated lithium resources total about 150 million tons: 30 million tons in the United States and 120 million tons elsewhere, led by Argentina (28 million), Bolivia (23 million), Chile (13 million), Australia (10 million), China (10 million), Germany (8.9 million) and Canada (8.1 million).

Which lithium projects are on official lists?

Which companies produce or process lithium?

Frequently asked questions

What is lithium used for?

Lithium is used in batteries, ceramics and glass and lubricating greases. Batteries: 88% of global end use; electric vehicles, grid storage, portable electronics and electric tools.

Which country produces the most lithium?

Australia produces the most lithium: an estimated 92,000 t, or 32% of the world total, in 2025, according to the USGS mine production figures.

Is lithium a critical mineral?

Yes. Lithium is on all four official critical minerals lists: the US, EU, Australian and Canadian. Lithium was already on the 2022 US list and stays on the final 2025 list of 60 minerals. US net import reliance for lithium in 2025 was more than 50%.

How much does lithium cost?

USGS reports the average 2025 price of lithium at $9,000/t (battery-grade lithium carbonate, annual average (real); -24% on 2024).

Sources

Read on October 14, 2026. Figures on this page come from these documents; where a number is an estimate, the source says so.

1. USGS Mineral Commodity Summaries 2026: Lithium. Production, reserves, uses, substitutes, recycling and events
2. USGS Mineral Commodity Summaries 2026: introduction (Table 7 and Figures 10A and 10B). Net import reliance, leading producer and price changes for critical minerals
3. USGS Mineral Commodity Summaries 2026: introduction (Table 4, export controls by country)
4. Federal Register: Final 2025 List of Critical Minerals
5. EUR-Lex: Regulation (EU) 2024/1252
6. Department of Industry, Science and Resources: Australia’s Critical Minerals List and Strategic Materials List
7. Government of Canada: Canada’s critical minerals
8. Permitting Council: current FAST-41 projects
9. Albemarle: second quarter 2026 results (Exhibit 99.1 to Form 8-K, August 2026)
10. Sociedad Química y Minera de Chile (SQM): fourth quarter 2025 earnings release (Form 6-K)
11. PLS Group: June 2026 quarterly activities report (30 July 2026)
12. Ganfeng Lithium: 2025 annual report, in Chinese (31 March 2026)
13. Rio Tinto: fourth quarter 2025 operations review (21 January 2026)
14. Zhejiang Huayou Cobalt: 2025 annual report, in Chinese (8 April 2026)