Mapping the Global Lithium Supply Chain: Where the World's Battery Metal Concentration Lies

The race to secure lithium reserves has become central to the energy transition strategy. As electric vehicle adoption accelerates and energy storage demand surges, understanding where the world’s lithium resources are concentrated is crucial for investors and policymakers alike. Global lithium reserves currently stand at 30 million metric tons as of 2024, according to data from the US Geological Survey, with a handful of nations controlling the lion’s share.

The Four Pillars of Global Lithium Supply

Chile: The Reserve Heavyweight

Chile dominates with 9.3 million metric tons of lithium reserves—roughly 31% of the world’s total. The country’s Salar de Atacama region alone accounts for approximately one-third of all global reserves and hosts what many consider the world’s most “economically extractable” lithium deposits. Despite holding the largest reserves, Chile ranked second in production during 2024, outputting 44,000 metric tons. This gap between reserves and production reflects challenges in scaling operations.

Major producers SQM and Albemarle operate extensively in the Salar de Atacama, but the landscape shifted dramatically after President Gabriel Boric’s April 2023 announcement to partially nationalize the industry. The state-owned Codelco now holds controlling stakes in lithium assets across the region. Recent government auctions in early 2025 saw seven bids for lithium contracts across six salt flats, signaling renewed investment momentum. Winners will be announced in March 2025, potentially reshaping Chile’s production outlook over the coming years.

Australia: From Reserve Second to Production Leader

Australia’s 7 million metric tons of reserves place it second globally, yet it achieved the highest production volume in 2024. The distinction lies in deposit type: while Chilean and Argentine lithium exists in brine form, Australia’s reserves are predominantly hard-rock spodumene deposits concentrated in Western Australia. The Greenbushes mine, operated through a joint venture involving Tianqi Lithium, IGO, and Albemarle, has been the backbone of Australian production since 1985.

Recent market headwinds have forced Australian producers to reassess operations. Plummeting lithium prices triggered production halts and project deferrals at several companies. However, new frontiers are emerging. Recent research published in “Earth System Science Data” mapping lithium distribution across Australian soils reveals untapped potential in Queensland, New South Wales, and Victoria, suggesting future production could diversify beyond Western Australia’s dominance.

Argentina: Emerging Producer with Cost Advantages

Argentina commands 4 million metric tons of reserves and ranks fourth globally in production, having extracted 18,000 metric tons in 2024. As part of the “Lithium Triangle”—shared with Chile and Bolivia—Argentina hosts more than half the world’s total reserves. The government has aggressively invested in capacity expansion, committing up to US$4.2 billion to its lithium sector in 2022, followed by approval for Argosy Minerals to expand operations at the Rincon salar from 2,000 MT to 12,000 MT annually.

The nation maintains a significant competitive edge: its lithium production remains cost-competitive even when prices collapse. In late 2024, mining major Rio Tinto announced plans to invest US$2.5 billion expanding extraction at the Rincon salar, targeting capacity increases from 3,000 to 60,000 metric tons by 2028. With approximately 50 advanced mining projects in development, Argentina is positioning itself as a pivotal supplier.

China: Processing Powerhouse with Growing Reserve Claims

China’s 3 million metric tons of official reserves pale against its geopolitical significance. The country produces 41,000 metric tons annually (up 5,300 MT year-over-year) and currently imports most lithium from Australia to feed its battery cell manufacturing and electronics sectors. China’s true leverage lies not in reserves but in processing infrastructure—it hosts the majority of the world’s lithium-processing facilities and produces most global lithium-ion batteries.

This dominance became a geopolitical flashpoint in October 2024 when the US State Department accused China of predatory pricing to eliminate non-Chinese competitors. However, Chinese media reported in early 2025 that the nation has discovered significantly larger lithium resources than previously disclosed. Official estimates now claim China accounts for 16.5% of global lithium resources (up from 6%), including a newly discovered 2,800-kilometer lithium belt in western regions with proven reserves exceeding 6.5 million tons and potential resources surpassing 30 million tons. These claims, if verified, would fundamentally reshape global supply calculations.

Canada’s Strategic Position in North American Supply

While not among the top four globally, Canada holds 1.2 million metric tons of lithium reserves, positioning it as North America’s primary alternative to reliance on international supply chains. For investors and policymakers, Canadian reserves represent critical supply diversification, particularly as geopolitical tensions between the US and China intensify competition for battery metal resources.

The Broader Global Picture

Beyond the major four, other countries maintain significant positions: the United States (1.8 million MT), Brazil (390,000 MT), Zimbabwe (480,000 MT), and Portugal (60,000 MT—Europe’s largest). Portugal produced 380 metric tons in 2024, demonstrating that even smaller reserve holders can develop meaningful production capacity.

Market Dynamics Reshaping the Industry

Industry analysts project that demand for lithium-ion batteries will accelerate dramatically through 2025, with EV and energy storage system-related lithium demand forecast to increase over 30% year-on-year. This trajectory means reserves alone don’t determine market influence—production capacity, processing capability, geopolitical stability, and investment climate all shape outcomes.

As nations compete to expand production and secure supply chains, countries with high reserves are transitioning from resource holders to strategic producers. The next phase will determine not just who has the most lithium, but who can deliver it most reliably to global battery makers and electric vehicle manufacturers.