Global Lithium Deposits: How Four Nations Shape the Energy Storage Future

The race for lithium dominance is reshaping global energy markets. As electric vehicle adoption accelerates and energy storage demand skyrockets, controlling major lithium deposits has become a strategic priority for nations worldwide. Benchmark Mineral Intelligence projects that lithium-ion battery demand tied to EVs and energy storage systems will surge over 30 percent year-on-year in 2025, placing unprecedented pressure on supply chains.

With global lithium reserves totaling 30 million metric tons as of 2024 (according to US Geological Survey data), the geographic concentration of deposits reveals a stark reality: four countries hold more than half of the world’s extractable lithium supplies. Understanding where these critical deposits are located—and who controls them—is essential for investors tracking the battery metal sector.

The Lithium Triangle Dominance: South America’s Outsized Influence

South America remains the epicenter of global lithium production, with three nations forming what industry experts call the “Lithium Triangle.” This region hosts over 50 percent of planetary lithium reserves, fundamentally reshaping how the world will power its energy transition.

Chile’s Unmatched Reserve Position

Chile commands 9.3 million metric tons of lithium deposits, the world’s largest concentration. The Salar de Atacama region alone accounts for approximately one-third of global reserves, making it the planet’s most critical lithium deposit zone. Yet despite this abundance, Chile ranked only second in 2024 production at 44,000 metric tons—a paradox reflecting legal and regulatory constraints.

Major producers SQM and Albemarle operate these deposits, but the Chilean government has pursued partial nationalization, directing state-owned Codelco to gain controlling stakes in future operations. This shift signals how nations with significant lithium deposits are reasserting control over their resources. Early 2025 bidding rounds for new lithium operation contracts across six salt flats attracted seven proposals, with winners announced in March 2025.

Argentina’s Expanding Capacity

Argentina holds 4 million metric tons of lithium deposits and ranks fourth globally in current production, extracting 18,000 metric tons annually. The country’s position strengthens through aggressive expansion plans. Rio Tinto announced a US$2.5 billion investment to scale production at its Rincon salar operations from 3,000 to 60,000 metric tons by 2028. Meanwhile, Argosy Minerals received government approval to expand carbonate production from 2,000 to 12,000 metric tons annually.

Argentina maintains cost competitiveness even in depressed price environments, hosting approximately 50 advanced lithium mining projects. The government’s 2022 commitment to invest up to US$4.2 billion over three years underscores the strategic value assigned to these lithium deposits.

The Hard-Rock Alternative: Australia’s Production Supremacy

Australia’s lithium deposit landscape differs fundamentally from its South American counterparts. While holding 7 million metric tons in reserves—primarily concentrated in Western Australia—Australia’s deposits exist as hard-rock spodumene rather than lithium brines.

This geographic distinction proved advantageous: Australia became the world’s leading lithium producer in 2024, despite lower total reserves than Chile. The Greenbushes lithium mine, operated through a joint venture involving Talison Lithium, Tianqi Lithium, IGO, and Albemarle, has continuously produced lithium since 1985.

Recent research indicates Australia’s lithium deposit potential extends beyond Western Australia. A 2023 University of Sydney study mapping lithium concentration in Australian soils identified elevated deposits across Queensland, New South Wales, and Victoria—suggesting future mining opportunities as technology improves and prices stabilize.

Price collapses in recent years prompted Australian producers to temporarily suspend operations, highlighting how reserve abundance alone doesn’t guarantee profitability. Market recovery may unlock new production sites across these emerging lithium deposit regions.

China’s Growing Strategic Role

China controls 3 million metric tons of documented lithium deposits, yet its influence vastly exceeds this reserve ranking. The nation produced 41,000 metric tons in 2024—a 5,300 metric ton increase year-over-year—while still importing substantial lithium quantities from Australia.

China’s lithium deposits consist of mixed types: brines dominate, but spodumene and lepidolite hard-rock reserves also exist. However, China’s true advantage lies downstream. The country hosts approximately 70 percent of global lithium-processing capacity and manufactures the majority of world lithium-ion batteries.

Recently, Chinese media reported significantly expanded domestic lithium deposits. Claims suggest national resources now represent 16.5 percent of global supplies, up from 6 percent previously. A newly discovered 2,800-kilometer lithium belt in western regions allegedly contains proven reserves exceeding 6.5 million tons of lithium ore, with potential resources surpassing 30 million tons. Improvements in salt lake and mica extraction technologies further enhanced reserve accessibility.

The US State Department accused China in October 2024 of employing predatory pricing to flood markets and eliminate non-Chinese competitors—a tactic enabled partly by these expanded domestic lithium deposits providing production flexibility.

Secondary Reserves: Emerging Players and Regional Distribution

Beyond the “Big Four,” substantial lithium deposits remain underutilized:

• United States: 1.8 million MT (primarily western deposits)
• Canada: 1.2 million MT
• Zimbabwe: 480,000 MT
• Brazil: 390,000 MT
• Portugal: 60,000 MT (Europe’s largest deposit concentration)

Portugal’s position demonstrates how European lithium deposits may reshape supply chains. The country produced 380 metric tons in 2024, representing early-stage extraction from relatively modest reserves compared to global leaders.

The Strategic Calculus: Reserves Alone Don’t Guarantee Market Share

The disconnect between reserve size and production volume reveals critical industry dynamics. Chile’s 9.3 million metric ton deposit base generates lower production than Australia’s 7 million metric tons, illustrating how regulatory frameworks, extraction technology, capital investment, and geopolitics shape real-world outcomes.

Nations controlling vast lithium deposits increasingly view them as strategic assets requiring direct state involvement. This trend—visible in Chile’s nationalization push and Argentina’s investment commitments—signals that future lithium supply will reflect geopolitical considerations as much as pure geology.

As global lithium demand accelerates through 2025 and beyond, countries hosting major deposits occupy privileged positions. Yet converting geological advantages into market dominance demands infrastructure, capital, technology, and political stability—factors that will ultimately determine which nations capture value from their lithium resources.